n NISM Certifications
NSM General NISM
Medium

Mr. Suryavanshi buys a bond at ₹130.50 and simultaneously purchases a put option on the same bond with a strike price of ₹130.50 for a premium of ₹0.20. What is his net payoff if the bond price at option expiry is ₹130?

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

Options

  1. A

    Rs. - 0.50

  2. B

    Rs. 0.50

  3. C

    Rs. - 0.20

  4. 0

    Correct answer

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

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