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Derivatives Project

Derivatives Project

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Published by: 47198666 on May 02, 2010
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07/04/2015

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A agrees to deliver 100 equity shares of Reliance to B on Sept. 30,
2002 at a Rate of Rs. 120 per share. Now if the price of share on that date is
Rs. 140 per share, than a who has short position would stand to loss of Rs.
(20*200) = 4000, long position would gain the same amount or vise versa if
price quoted is less than delivery price.
Profit/Loss = ST-E
ST = spot price on maturity date
E = delivery price

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