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Nifty is trading at 14540 when a trader decided to form a strategy. He entered into the following positions for current month expiry: Bought 1
Nifty is trading at 14540 when a trader decided to form a strategy. He entered into the following positions for current month expiry: Bought 1 ITM call 14400 strike Sold 1 ITM call 14500 Strike The prevailing MIBOR rate for current month is 4.27% and Annualized volatility is 27.68%. On the day of expiry Nifty closed at (a) 14523 (b) 14656 (c) 13487 (d) 12900 Find out the profit and loss after calculating the values of option premium through Black and Scholes model. Name it and show the chart of the strategy used Nifty is trading at 14540 when a trader decided to form a strategy. He entered into the following positions for current month expiry: Bought 1 ITM call 14400 strike Sold 1 ITM call 14500 Strike The prevailing MIBOR rate for current month is 4.27% and Annualized volatility is 27.68%. On the day of expiry Nifty closed at (a) 14523 (b) 14656 (c) 13487 (d) 12900 Find out the profit and loss after calculating the values of option premium through Black and Scholes model. Name it and show the chart of the strategy used
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