OPTIONS PROBLEMS

1.The following quotes were observed by Ms. Smitha on March 11th 2015 in economic times.

Contracts Open High Low Close Open Traded No of Underlying

interest quantity contact
CE- 191.05 205 191.05 204.90 41000 1600 8 Nifty
1950marc
h 2015
PE- 19.50 26 18.65 19.9 264700 1369000 6845 Nifty
1950marc 0
h 2015

2. The following quotes were observed by Ms. Sanjay on March 11th 2017in economic times.
Contracts Open High Low Close OI Traded No of Underlying
quantity contact
CA-370 7.35 9.60 7.35 8.75 649500 13800 92 ACC
March
2015
PA-135 3.00 3.10 1.75 1.90 203200 102400 64 MTNL
March
2015

Ans : Strike price : 350 and 135

3. The shares of B crop ltd are selling at Rupees 105 each. Mr. Chandrashekar wants to chip
in buying a 3 months call option at a premium of Rs 10 per option. The exercise price is
rupees 110. Five possible prices per share on the expiration date ranging from ₹100 to ₹140
with intervals of ₹10 are taken into consideration by him. what is Mr. Chandrashekar payoff
as call option holder on expiration .
4. Mr. Ganesh has purchased European call options on reliance .He also purchase the
following European put option on ACC. what decision would he take on expiry if
reliance(RIL) closes at rupees 835 and ACC closes at rupees 565 .Ignore premium paid.
a) RIL 830 call
b) ACC 510 Put
c) RIL 840 call
d) ACC 520 Put.
5.Identify which of the following is ITM,OTM and ATM for the buyer of the option . Which
of these option would be exercised.
a) RIL 840 CALL when the price on expiry is Rs 855
b) ACC 510 PUT when the price of the expiry is Rs 510 .
c) RIL 830 CALL when the price on expiry is Rs 840
d) ACC 520 PUT when the price of the expiry is Rs 500
e) RIL 800 CALL when the price on expiry is Rs 765
f) ACC 540 PUT when the price of the expiry is Rs 555
6) Find Intrinsic value time value. Premium paid is given in bracket. Detail of option
purchase are given.
a) HLL 180 PUT (RS 9)
b) L& T 1510 PUT (RS 2)
c) HLL 205 CALL (RS 2)
d) L& T 1500 CALL(RS 12)
e) RIL 800 Call(Rs 37)
f) ACC 540 PUT (Rs 39)
On the day of expiry the prices of stock were HLL Rs 200, L&T 1510, RIL Rs 825 and ACC
Rs 515.
7. state whether the options it is ITM, OTM and ATM
Stock Options Strike price Stock price
A CALL 250 260
B PUT 250 260
C PUT 260 250
D CALL 260 250

8. create a table showing stock price, strike price, IV, option price, TV. Strike price is 25
Stock Price Call option Price
25 3.00
30 7.50
35 12.00
40 16.50
45 21.
50 25.50

9. Find Intrinsic value

Stock Price Strike Price Premium Nature
25 25 13 CALL
30 35 17.5 PUT
35 25 22 PUT
40 25 16.5 CALL
45 55 12 PUT
50 50 20.5 PUT