Question

Suppose you buy a put option with a strike price of Rs. 60 at the premium of
Rs 5. What will be your net profit or loss if future price is Rs. 75?​

Answer 1

Answer:

25%

Explanation:

Given:

• Strike price = $Rs. 60$
• Premium of $Rs. 5$

To find:

• Net profit or loss for price $Rs. 75$

Solution:

For $Rs.60$ premium is $Rs. 5$

For $Rs. 2 = 5/60$

For $Rs. 75 =\frac{5*75}{60}$

$=6.25$

$(6.5-5)=1.25$

$=\frac{1.25}{5} *100$

$=25 percent$

#SPJ2