n NISM Certifications
NSM General NISM
Medium

Mr. Guru buys a bond at ₹54.50 and sells a call option (strike ₹55) for ₹0.10 premium. What is his net payoff if the bond price at expiration is ₹55.50?

Practice question from NISM Series IV - Mock Test 1 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Rs. 0.40

  2. Rs. 0.60 (Correct)

    Correct answer

  3. C

    Rs. -0.50

  4. D

    Rs. -0.20

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

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