The following information is available with respect to an investor Ram, trading in the future market: Ram has purchased 80 lots of index future @ 881, on day one out of which he sold 20 lots @ 878 and carried the remaini

Computation of Total Payoff and Cross Verification: One lot = 125 units Total Payoff from the transaction (Original Sauda Method): 1. Loss on 20 lots sold on Day One: Units = 20 lots × 125 units/lot = 2,500 units Loss = (Purchase Price - Sale Price) × Units = (881 - 878) × 2,500 = 3 × 2,500 = ₹ 7,500 (Loss) 2. Profit on 60 lots sold on Day Three: Units = 60 lots × 125 units/lot = 7,500 units Profit = (Sale Price - Purchase Price) × Units = (908 - 881) × 7,500 = 27 × 7,500 = ₹ 2,02,500 (Profit) Total Payoff = Profit on 60 lots - Loss on 20 lots Total Payoff = ₹ 2,02,500 - ₹ 7,500 = ₹ 1,95,000 (Profit) Cross Verification with Daily Mark to Market (MTM): Day One MTM: Intra-day trade (20 lots): (881 - 878) × 20 × 125 = ₹ 7,500 (Loss) Carry forward (60 lots): (888 - 881) × 60 × 125 = ₹ 52,500 (Profit) Net MTM Day One = ₹ 52,500 - ₹ 7,500 = ₹ 45,000 (Credit) Day Two MTM: No trade. Closing price = 878. MTM = (Previous Day Closing Price - Current Day Closing Price) × 60 × 125 MTM = (888 - 878) × 60 × 125 = 10 × 7,500 = ₹ 75,000 (Debit) Day Three MTM: Sold remaining 60 lots @ 908. Previous day closing price = 878. MTM = (Sale Price - Previous Day Closing Price) × 60 × 125 MTM = (908 - 878) × 60 × 125 = 30 × 7,500 = ₹ 2,25,000 (Credit) Total Payoff (Sum of Daily MTM): Total Payoff = MTM Day One + MTM Day Two + MTM Day Three Total Payoff = ₹ 45,000 (Credit) - ₹ 75,000 (Debit) + ₹ 2,25,000 (Credit) Total Payoff = ₹ 1,95,000 (Profit) Both methods yield the same total payoff, ₹ 1,95,000 Profit.