Markets: A Rigorous Course

M03 · Problem 14 ★ Check

Position sizing across instruments

Account ₹25 lakh, risk 0.75% per trade. (a) Long a stock at ₹812 with a stop at ₹776. Shares and notional? (b) Long Bank Nifty futures (lot 30) at an assumed 52,000 with a 400-point stop. Lots? (c) Buy Nifty call options at a premium of ₹140 (lot 65), with the premium as the risk and no stop. Lots? (d) If all three are open together, what is the total planned risk, and what is the worst case if (a) and (b) gap through their stops by a further 3% of price?

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