S1= Reliance share being sold in market after two month at Rs. 2080. No loss to buyer and seller.

S2= Reliance share being sold in market after two month at Rs. 2180. In this case the seller is at loss of
Rs. 100 per shares. Total loss to the seller is Rs. 100*505= 50500. The loss of the seller is profit of the
buyer. Thus the seller will pay buyer Rs. 50500.

S3= Reliance share bring sold in market after two months at Rs. 2000. The buyer is in loss of Rs. 80 per
share. Total loss is 80*505= Rs. 40400. Thus the buyer will pay Rs. 40400 to seller.

SE ( Clearing House)

Broker Broker

Underlying Asset= Stock/ Index

Future Buyer Stock Future= REL
Lot= 1 (505) Future Seller
Expiry= 1m/2m/3m
Cash Price/ Spot price= 2000
Reliance Future Price= 2080