Derivatives, Futures & Options
3 terms
Long Call
Derivatives, Futures & Options
₹
A position created by buying a call option, with loss limited to the premium and gain rising as the underlying rises.
Profit at expiry = max(Spot - Strike, 0) x Lot Size - Premium Paid x Lot Size; Break-even = Strike + Premium
Long Put
Derivatives, Futures & Options
₹
A position created by buying a put option, with loss limited to the premium and gain rising as the underlying falls.
Profit at expiry = max(Strike - Spot, 0) x Lot Size - Premium Paid x Lot Size; Break-even = Strike - Premium
Lot Size
Derivatives, Futures & Options
shares
The fixed number of units of the underlying that one derivative contract represents.
Contract Value = Lot Size x Price of the Underlying