Option Exercise

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30th January 2010, 01:45 PM

rajivka

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Join Date: Aug 2009

Location: Hyderabad

Posts: 171

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No, I will get Rs 200 if my option is in money. But I need to pay STT of Rs 650 and brokerage of Rs 260. So I need to pay Rs 710 for my in-money option.

So I conclude maximum loss is not limited to the premium paid + brokerage at the time of purchase. There can be more losses, if the option is slightly in the money.

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