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Section C (4 Mark)
A trader buys three-month put options on 1 unit of gold with a strike of Rs.17000/10 gms at a premium of Rs.70. Unit of trading is 1kg. On the day of expiration, the spot price of gold is Rs.16800/10 gms. What is his net payoff?
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B. (+) 13,000
C. (-) 13,000
D. (+) 20,000
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