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1 Comments

1. Prafulla Kumar   I Like It. |Report Abuse|  Link|September 24, 2018 6:29:40 PMReply
I think the Put Option calculation shown in example is wrong. If you sum up the elements, then the sum becomes Rs. 71,000.

I think the formula should be as follows:

Profits = [ (Strike Price - Current Price) x lot size ] - Premium Paid
Then
Profits = [(2000 -1500) x 100] - 21000
= [500 x 100] - 21000
= 50000 -21000
= 29000.
1.1. Nand kishore Sahu   I Like It. |Report Abuse|  Link|September 25, 2018 2:28:48 PM
Thanks for pointing out the error. We have corrected the calculation in the above example.