What happens if I buy PE

General
1

What happens if I buy for eg. PE at spot price if 9000 and underlying price is 8900. At end of d day price remains near 8980 ?

2

You should start learning about the options from Varsity and get your basics clear.

3

Iam learning there but the thing I asked is not mentioned anywhere. I even asked this question below questions section in varsity but no one answering. Even here iam asking this question second time.

4

Your question itself is not clear, clarify which is the spot and strike price.

5

Suppose I bought PE at Spot price of 9000 and price of a stock is 8900 and at the end of expiry it remains below 8900 . What will be my position? ( I mean will I be in profit or loss)

6
  1. 9000 PE = Strike Price not the spot price.
  2. Price of the stock i.e 8900 = Spot price.

Since it is a Put option, if the spot closes below 9000 on expiry day, you will get ((9000-closing price)*Lot size).

1 Like
7

Thnx…for answering my question. And yeah that was strike price.