abhishreshthaa
Abhijeet S
Call OPTION EXAMPLE
On 22nd Aug Ajay buys a call option from Vijay to buy 1200 shares of SATYAM for Rs 200 each on 25th Sep .
The spot price of TISCO is 195.
The Price of each option is Rs 10.
Ajay pays Vijay s Rs 12,000 (1200* Rs 10).
On 25th Sep the spot price of SATYAM is Rs 205.
What will Vijay do ?
Let the option expire.
He will not exercise the option.
PUT OPTION EXAMPLE
On 22nd Aug Ajay buys a Put option from Vijay to buy 1200 shares of SATYAM for Rs 180 each on 25th Sep .
The spot price of SATYAM is 190.
The Price of each option is Rs 11.
Ajay pays Vijay s Rs 13200 (1200* Rs 11).
On 25th Sep the spot price of SATYAM is 185.
What will Vijay do ?
Let the option expire.
He will not exercise the option.
On 22nd Aug Ajay buys a call option from Vijay to buy 1200 shares of SATYAM for Rs 200 each on 25th Sep .
The spot price of TISCO is 195.
The Price of each option is Rs 10.
Ajay pays Vijay s Rs 12,000 (1200* Rs 10).
On 25th Sep the spot price of SATYAM is Rs 205.
What will Vijay do ?
Let the option expire.
He will not exercise the option.
PUT OPTION EXAMPLE
On 22nd Aug Ajay buys a Put option from Vijay to buy 1200 shares of SATYAM for Rs 180 each on 25th Sep .
The spot price of SATYAM is 190.
The Price of each option is Rs 11.
Ajay pays Vijay s Rs 13200 (1200* Rs 11).
On 25th Sep the spot price of SATYAM is 185.
What will Vijay do ?
Let the option expire.
He will not exercise the option.