Ramesh has sold one month put option of equity share of Moon Ltd. @ ₹ 60. The strike price of the option is ₹ 600 and current market price is ₹ 572. What is net profit/loss to him if the price of Moon Ltd. closed on the

If the price closes on ₹ 549: As Ramesh sold a put option with a strike price of ₹ 600, and the market price at expiry is ₹ 549, the option will be exercised. The buyer of the put option will sell the share to Ramesh at the strike price of ₹ 600, while the market price is ₹ 549. Ramesh's loss on exercising the option = Strike Price - Market Price at Expiry = ₹ 600 - ₹ 549 = ₹ 51 Since Ramesh sold the put option, he received a premium of ₹ 60. Net profit = Premium received - Loss on exercise Net profit = ₹ 60 - ₹ 51 = ₹ 9