Question
| Id | 334 |
|---|---|
| Number | 4 |
| Description | VFO’s market strategist is considering a six-month call option strategy on the NIFTY 50 benchmark Indian stock market index to increase broad market equity exposure. The NIFTY 50 price today is INR15,200, and the strategist obser ves that a call option with a INR16,000 exercise price (X) is trading at a premium of INR1,500. Which of the following represents the payoff and profit of this strategy just prior to maturity if the NIFTY 50 is trading at INR16,500? |