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  • Bebalina Sen - FRM Solution

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    DEBALINA SEN
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    The document provides data on spot prices, strike prices, and premiums for 7 call and put option contracts. It asks to calculate profit/loss for call option buyers and sellers, and put option buyers and sellers based on the data. It also asks to identify options that are in the money, at the money, or out of the money. The solution calculates the profit/loss for each option buyer and seller using the relevant spot and strike prices and premiums paid/received. It identifies options as in the money, at the money, or out of the money based on the spot price relative to the strike price.

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    19318_bebalina sen_frm solution

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    The document provides data on spot prices, strike prices, and premiums for 7 call and put option contracts. It asks to calculate profit/loss for call option buyers and sellers, and put option buyers and sellers based on the data. It also asks to identify options that are in the money, at the money, or out of the money. The solution calculates the profit/loss for each option buyer and seller using the relevant spot and strike prices and premiums paid/received. It identifies options as in the money, at the money, or out of the money based on the spot price relative to the strike price.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    10 views2 pages

    Bebalina Sen - FRM Solution

    Uploaded by

    DEBALINA SEN
    The document provides data on spot prices, strike prices, and premiums for 7 call and put option contracts. It asks to calculate profit/loss for call option buyers and sellers, and put option buyers and sellers based on the data. It also asks to identify options that are in the money, at the money, or out of the money. The solution calculates the profit/loss for each option buyer and seller using the relevant spot and strike prices and premiums paid/received. It identifies options as in the money, at the money, or out of the money based on the spot price relative to the strike price.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 2

    Q.

    From the given data find out:


     In the Money
     At the Money
     Out the Money
    And Profit & Loss for Buyer and Seller for Call & Put Option with Following
    Data: -
    S.NO Spot Price Strick price Premium
    1 8050 9200 50
    2 8150 9000 40
    3 8300 8900 35
    4 8500 8700 25
    5 8800 8600 10
    6 9000 8500 28
    7 9100 8400 26
    8 9150 9400 15

    From the above data calculate the following: -


     Ashish Mishra is Call Option Buyer for all the Strick Price
     Harsh Verma is Call Option Seller for all the Strick Price
     Vedika is Put Option Buyer for all the Strick price
     Khyati is Put Option Seller for all the Strick price
    Also Calculate: -
     In the Money
     At the Money
     Out the Money
    SOLUTION:
    Call option (buyer):
    Loss: Gain:
    50*75=3750 (8800-8610)*75=14250
    40*75=3000 (9000-8528)*75=35400
    35*75=2625 (9100-8426)*75=50550
    25*75=1875
    15*75=1125

    Call option (seller):


    Loss: gain:
    (8800-8610)*75=14250 50*75 =3750
    (9000-8528)*75=35400 40*75 =3000
    (9100-8426)*75=50550 35*75 =2625
    25*75=1875
    15*75=1125

    Put option (buyer):


    gain: loss:
    (9150-8050)*75=82500 10*75=750
    (8960-8150)*75=60750 28*75=2100
    (8865-8300)*75=42375 26*75=1950
    (8675-8500)*75=13125
    (9385-9150)*75=17625

    Put option (seller):


    Gain: loss:
    10*75=750 (9150-8050)*75=82500
    28*75=2100 (8960-8150)*75=60750
    26*75=1950 (8865-8300)*75=42375
    (8675-8500)*75=13125
    (9385-9150)*75=17625

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