n NISM Certifications
NSM General NISM
Medium

A participant buys a put option with a strike price of Rs. 98.50 at a premium of Rs. 0.20. If the bond price on expiry is Rs. 98.50, what is the net payoff?

Practice question from NISM Series IV - Mock Test 4 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. Loss of Rs. 0.20

    Correct answer

  2. B

    Profit of Rs. 0.20

  3. C

    Profit of Rs. 0.25

  4. D

    No profit & no loss

A full explanation for this question is being written. In the meantime, the correct answer is highlighted above.

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