n NISM Certifications
NSM General NISM
Medium

Current USDINR spot is Rs 75. Premiums for March 2020 USDINR put at Rs 75.50 strike are Rs 0.27/0.28 and call at Rs 75.25 strike are Rs 0.35/0.36. A client buys one lot of put at 75.50 strike and sells one lot of call at 75.25 strike. On expiry, RBI USDINR reference rate is Rs 75.50. What is the net profit/loss in INR for the client?

Practice question from NISM Series I - Mock Test 3 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. Rs 180 loss

    Correct answer

  2. B

    Rs 80 profit

  3. C

    Rs 280 loss

  4. D

    Rs 380 loss

Why this is the answer

Put: Bought at Rs 0.28 → loss = Rs 0.28 × 1000 = Rs 280. Call: Sold at Rs 0.35; settlement at 75.50 → intrinsic loss = (75.50 - 75.25) = Rs 0.25; profit = Rs 0.35 - Rs 0.25 = Rs 0.10 × 1000 = Rs 100. Net loss = Rs 280 - Rs 100 = Rs 180.

Test yourself for real

Take a full General NISM mock test.

Same duration, same weighting, same difficulty distribution as the real exam — with explanations on every question.