What will be your net profit at share price at expiration

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Reference no: EM131881120

The put on the Infosys share is selling with an exercise price Rs 3,400 at a premium of Rs 37.50 on 22 August 2002.

On the same day, the call is selling at a premium of Rs 32.50 with an exercise price of Rs 3,300. The spot price of the share is Rs 3,370.

The lot size is 100. What will be your net profit at share price at expiration ranging from Rs 3,200 to Rs 3,700 if you buy call with the exercise price of Rs 3,500 and buy put with the exercise price of Rs 3,300? Draw a profit graph.

Reference no: EM131881120

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