On February 15, Priya bought a January Nifty futures contract that cost her ₹5,00,000. An initial margin of ₹40,000 was paid by her to the broker. Each Nifty futures contract is for the delivery of 200 Nifty. On February

Calculation of Profit/Loss for Priya Futures Contract Cost = ₹5,00,000 Each Nifty futures contract is for the delivery of 200 Nifty. Amount paid per Nifty futures = Total Cost / Number of Nifty per contract = ₹5,00,000 / 200 = ₹2,500 per Nifty On February 25, the index closed at 2,820. This is the closing price for the futures contract. Profit/Loss per Nifty = Closing Price - Purchase Price = ₹2,820 - ₹2,500 = ₹320 profit per Nifty Total Profit made by Priya = Profit per Nifty * Number of Nifty per contract = ₹320 * 200 = ₹64,000 Priya made a profit of ₹64,000.