INVESTMENT GURUS HELP ME OUT ON THIS QUESTION ON NIFTY.?

Ramu buys the nifty call choice with the set upon cost of Rs 4100 during the reward of Rs. 100. If during the expiry date, Nifty is trade during Rs. 4350, afterwards Mr. Ram would practice his choice as well as consequence the net volume of Rs ____________ ?

{ 1 comment… read it below or add one }

muncie birder May 4, 2010 at 6:22 am

This is a pretty simple problem. The strike is 4100 and at expiration it is trading at 4350 4350 – 4100 = 250. Ram paid 100. So 250 – 100 = 150. That is the gross not the net. The net would be the gross less commissions which were not stated in the problem. 150 each. It was not stated the number that he purchased.

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