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Exam Code: W4

Exam Name: Organizational Culture Change

Certification Provider: WorldatWork

Related Certification: Organizational Culture Change

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Section B (2 Mark)
Ashish is bullish about HLL which trades in the spot market at Rs.210. He buys 10 three-month call option contracts on HLL with a strike of 230 at a premium of Rs.1.05 per call. Three months later, HLL closes at Rs.
250. Assuming 1 contract = 100 shares, his profit on the position is ___________.
A. Rs. 10,000
B. Rs. 18,950
C. Rs. 20,000
D. Rs. 19,500
Answer: B

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