1.

If you bought 100 Fortis @ 3000 on 18Dec. 2015and worry about the market fall, which strategy you will use to minimize the risk of downfall of the market and what would be your P/L position if Fortis future on 18 Dec. was 3100 and at the expiry settlement price of Fortis is 2800?

Answer»

Bought 100 Fortis @3000= Rs. 3, 00,000

Fortis future contact value= Rs. 3,10,000

Fortis spot price at the maturity= Rs. 2800

If you were start the Fortis future by Hedging Position your P/L position will be Profit in future (3100-2800)= 300 each Fortis

Loss position in spot (3000-2800) = 200 each in Fortis

Overall profit position (300-200) x lot

100 x 100= Rs. 10,000



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