Currency Options


#1

I bought 10 lots of USDINR strike price of 70 Rs at a premium of 0.5,
So my total premium would be 500 Rs + Taxes.

Now consider expiry is tomorrow and LTP for USDINR Nov 70 is 0.8,
which means, if i sell now i’ll get 800 Rs - taxes.

What happens if i let the options expire and the expired prices is 1 rs ??

Thanks in advance.

Regards
Prem


#2

You get back Rs 1000. So you make a gross profit of Rs 500.