Konark Fund had the following trades of Lever shares in the options market through Silver Man brokers. The stock exchange requires that the writer of the options maintain 10 percent of the value of the contract as margin money throughout the life of the contract.

Transcribed Image Text:

Date Product Strike Price Expiry Quantity Rate B/S Brokerage (SGD) (SGD) (SGD) 23-Jan-X1 Put 50 16-Mar-X1 10,000 5.00 B 540 23-Feb-X1 Put 50 16-Mar-X1 8,000 4.00 B 440 10-Mar-X1 Put 50 16-Mar-X1 12,000 3.00 S 720 Liquidation Method FIFO Market Rate of Underlying Stock, Lever January 31: SGD48.00 February 28: SGD43.00 March 16: SGD55.00 Market Rate of Lever Put Option with Strike Price $50, Expiry March 16 January 31: SGD2.00 February 28: SGD6.00