You have a put option on ITC Ltd. stock with a strike price of Rs.200/- per share. The option expires today. If the stock price today is 211/- per share what is the payoff on the expiration day? If you also have a call option on ITC Ltd. with exercise price of Rs. 195/share, which also expires today, what will be the final payoff? 

What is this combination called?

Answer rating: 100% (QA)

The payoff on the put option on the expiration day will be Rs 211 200 Rs 11 per share Since the stoc... View the full answer