Markets: A Rigorous Course

M01 · Problem 7 ★★ Check

Option costs

You buy one lot (65) of a Nifty call at ₹80 and later sell it. (a) Compute the round-trip charges if you sell at ₹80, and the break-even premium rise per unit. (b) If the option's delta is 0.45, roughly how many Nifty points must the index rise to cover costs? (c) The option expires in the money with intrinsic value ₹150. Compute the STT if it is exercised, at the rate from 1 Apr 2026 and at the earlier 0.125% rate, and compare with the STT on selling it at ₹152 just before expiry under the old 0.1% rate. What did the April 2026 change do to the old "sell before expiry to save STT" rule?

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Commas, ₹, % and 1e-3 notation are accepted.

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