Put and Call option
This query is : Resolved
sandeep Gupta
(Querist)
15 April 2009
Pls exlain the concept of put and call option and arbitrage with a simple example.
Ashish Aggarwal
(Expert)
15 April 2009
Call option is a right to buy. Suppose X buys one lot of Infosys 1371 strike price at a premium of Rs 69 per share. The break even point will be at price of Rs. 1440. after which X wll start making profit maximum loss which X can have is Rs. 69 per share.
Put option is a right to sell. Suppose X buys one lot of Infosys 1371 strike price at a premium of Rs 69 per share. The break even point will be at price of Rs. 1302. after which X wll start making profit maximum loss which X can have is Rs. 69 per share.
Put option is a right to sell. Suppose X buys one lot of Infosys 1371 strike price at a premium of Rs 69 per share. The break even point will be at price of Rs. 1302. after which X wll start making profit maximum loss which X can have is Rs. 69 per share.
sandeep Gupta
(Querist)
16 April 2009
Thank you. Can u give one example of arbitrage functioning if possible
Ankur Garg
(Expert)
04 May 2009
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