Question 3 A buyer buys a stock option of New Light Company Limited on 30 August, 2006 with a strike price of 2 150 per unit to be expired on September 30, 2006. The premium is 10 per unit and the market lot is of 100. The margin to be paid is 60 per unit Show, how the transactions will appear in the books of the seller, when: 0 The option is settled by delivery of the Asset, and (m) The option is settled in cash and the Index price is 2160 per unit. (8 Marks, May, 2007) Question 3 A buyer buys a stock option of New Light Company Limited on 30 August, 2006 with a strike price of 2 150 per unit to be expired on September 30, 2006. The premium is 10 per unit and the market lot is of 100. The margin to be paid is 60 per unit Show, how the transactions will appear in the books of the seller, when: 0 The option is settled by delivery of the Asset, and (m) The option is settled in cash and the Index price is 2160 per unit. (8 Marks, May, 2007)