22. VSNL's share price is expected to decline due to non-payment of its dues by the WorldCom,...

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22. VSNL's share price is expected to decline due to non-payment of its dues by the WorldCom, lowering margins and other negative sentiments in the market. The current share price is *123.70 and the daily volatility of the VSNL share is 2.74 percent. Based on the Value at Risk (VaR), the probability of the share price going above $142.5 is quite low. The put on the VSNL share with an exercise price of 150 is selling for *7.50. Should you buy the put? Draw a profit graph.

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