n NISM Certifications
NSM General NISM
Medium

Mr. Sunny buys a call option (strike ₹40.25, premium ₹0.20) and sells a call option (strike ₹39.50, premium ₹0.60). What is his net profit or loss if the underlying price at expiry is ₹39.50?

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

Options

  1. A

    Rs. -0.60

  2. B

    Rs. 0.20

  3. Rs. 0.40 (Correct)

    Correct answer

  4. D

    0

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

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