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Category > Business & Finance Posted 22 Jul 2017 My Price 12.00

SBI shares are selling on January 1 at INR 2,500

SBI shares are selling on January 1 at INR 2,500. Put options are available on SBI shares with expiry on January 29 and exercise price of INR 2,600. These options are priced at INR 160. The contract size is 132. These are American options and these options are not expected to pay any dividends during January.

  1. At what share price on January 29 would you exercise these put options?
  2. Would you exercise these put options if the share price on January 17 is INR 2,540?
  3. Calculate the terminal value of these put options (in terms of per share) for SBI share prices of INR 2,400, INR 2,500, INR 2,600, INR 2,700 and INR 2,800.
  4. Calculate the gains and losses for the put buyer if SBI share prices of INR 2,400, INR 2,500, INR 2,600, INR 2,700, and INR 2,800.
  5. Calculate the gains and losses for the put writer if SBI share prices of INR 2,400, INR 2,500, 

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Status NEW Posted 22 Jul 2017 12:07 PM My Price 12.00

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