12-05-2010, 07:20 PM
[B]An investor buys 5 options on shares of at a price of Rs 50 per share. Each option consists
of 100 shares and premium paid is Rs. 2 per share. What would be the total option cost for
investor if the share price is Rs. 55 at the expiry of option?
► Rs. 1,000
► Rs. 1,500
► Rs. 2,500
5 option each option have 100 share
total share is 5 *100 =500
total cost of option is 50*500=25,000
[/B]
of 100 shares and premium paid is Rs. 2 per share. What would be the total option cost for
investor if the share price is Rs. 55 at the expiry of option?
► Rs. 1,000
► Rs. 1,500
► Rs. 2,500
5 option each option have 100 share
total share is 5 *100 =500
total cost of option is 50*500=25,000
[/B]