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Payoff table and Payoff graph
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Questions in this quiz (7)
1Exercise price of put option = 1,000
Price of underlying asset on expiry date = 1,200
Premium received/paid on put option = 45
How much is the net pay-off of Put writer?- AProfit of Rs.45
- BLoss of Rs.200
- CLoss of Rs.155
- DProfit of Rs.155
2Exercise price of call option = Rs.100
Premium paid/received = Rs.10
What will be the break-even price?- A100
- B110
- C90
3Exercise price of call option = 200
Exercise price of Put option = 220
Premium paid/received on call and put option = Rs.6 and Rs.4
You have bought one call option and sold one put option. How much will be the net profit/loss if actual price is Rs.240 on expiry date?- AProfit of Rs.40
- BProfit of Rs.38
- CProfit of Rs.42
- DLoss of Rs.42
4You have bought a call option with exercise price of Rs.100. You have sold a call option with exercise price of Rs.80. Premium on Rs.100 option was Rs.10 and Premium on Rs.80 option was Rs.25.
What will be the break-even price?- A100
- B80
- C115
- D95
5An investor goes long on two puts of EP of Rs.60 (premium of Rs.5) and goes short on one call each of EP of Rs.55 (premium of Rs.2) and EP of Rs.65 (premium of Rs.7). What will be the net profit/loss if stock closes at Rs.62 on expiry date?
- AProfit of Rs.3
- BProfit of Rs.4
- CLoss of Rs.1
- DLoss of Rs.4
- EProfit of Rs.1
6Purchased one 3-month call option with a premium of Rs. 30 and an exercise price of Rs. 550. Purchased one 3-month put option with a premium of Rs. 5 and an exercise price of Rs. 450.
Price on expiry date is Rs.600.
How much is the profit/loss if lot size is 100 shares?- AProfit of Rs.5,000
- BLoss of Rs.3,500
- CProfit of Rs.1,500
- DLoss of Rs.1,500
7You plan to buy shares of TCS Limited. CMP of TCS is Rs.1,000. You currently don't have money and also intend to pay a maximum of 5 percent more than CMP. What action can be taken in option market to achieve this?
- ABuy Put option of Exercise price of Rs.1,050
- BBuy call option of Exercise price of Rs.1,050
- CBuy Put option of Exercise price of Rs.950
- DBuy call option of Exercise price of Rs.950
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- Chartered Accountancy Strategic Financial Management Quiz on Payoff table and Payoff graph, created by Dinesh Jain on 01/11/2019.
- Author
- Dinesh Jain
- Language
- English
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