All Black-Scholes assumptions hold (including no dividends). Consider a standard European call and a standard put on the same stock. Assume that each option has the same maturity, and is struck at-the-money (i.e., strike equals current spot).
For simplicity, assume that the interest rate is zero. Draw the payoff diagram for each option (i.e. terminal payoff to option versus level of underlying).
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A successful service encounter most often apprears to have less to do with compensation than a combination of loyalty to and belief in a company's service concept by a server and a reciprocal amount of trust in the server's ability to manage a service encounter effectively on a real-time basis by the company's management.
Such things as reciprocal loyalty and trust are built over time. They often are associated with both high quality and high productivity, in part resulting from the establishment of long-standing customer relationships and the sizable revenue stream they may represent. Just as important, they contribute to and result from close attention to the personal development of the server and resulting low turnover of staff, reinforcing high productivity and presenting added opportunity for high-quality customer encounters. The loyalty of employees to their customers, their company, and the service concept they are delivering. The trust of employees by a service company's management. And the loyalty of customers, employees, supplies, and investors to a service provider.
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