Derivatives Test II

1) Explain Buy Call and Sell Call with Payoff Diagram. (10 Marks)

2) Explain Buy Put and Sell Put with Payoff Diagram. (10 Marks)

3) Spot Price = Rs. 100. Put Option Strike Price = Rs. 98. Premium = Rs. 4. An investor buys the Put Option contract. On Expiry of the Option the Spot price is Rs. 108.What is Net profit or loss for the Buyer of this Put Option. (5 Marks)

4) Ashish is bullish about HLL which trades in the spot market at Rs.210. He buys 10 three-month call option contracts on HLL with a strike of 230 at a premium of Rs.1.05 per call. Three months later, HLL closes at Rs. 250. Find Net Profit/loss in this transaction. Assuming 1 contract = 1000 shares. (5 Marks)

5) Mr. X is bearish on SBI which currently trades in spot market at Rs. 2430. He sold a 1 month Call option contract of Strike price 2400 at a premium of Rs.105 per call. On expiry, SBI closes at 2550. Calculate his net profit or loss in this transaction. Assume 1 contract = 50 shares. (5 Marks)

Derivatives Test II

1) Explain Buy Call and Sell Call with Payoff Diagram. (10 Marks)

2) Explain Buy Put and Sell Put with Payoff Diagram. (10 Marks)

3) Spot Price = Rs. 100. Put Option Strike Price = Rs. 98. Premium = Rs. 4. An investor buys the Put Option contract. On Expiry of the Option the Spot price is Rs. 108.What is Net profit or loss for the Buyer of this Put Option. (5 Marks)

4) Ashish is bullish about HLL which trades in the spot market at Rs.210. He buys 10 three-month call option contracts on HLL with a strike of 230 at a premium of Rs.1.05 per call. Three months later, HLL closes at Rs. 250. Find Net Profit/loss in this transaction. Assuming 1 contract = 1000 shares. (5 Marks)

5) Mr. X is bearish on SBI which currently trades in spot market at Rs. 2430. He sold a 1 month Call option contract of Strike price 2400 at a premium of Rs.105 per call. On expiry, SBI closes at 2550. Calculate his net profit or loss in this transaction. Assume 1 contract = 50 shares. (5 Marks)