A results-day gap on stock futures

Use 9A.14.1. A stock trades at ₹1,500 and its futures lot is 500 shares; take the margin (SPAN plus ELM) as 20% of notional (both illustrative). A trader with ₹5,00,000 of capital is long 3 lots of the near-month future into the company's results, with a stop 3% below the entry. The stock opens 12% lower the next morning, and the stop fills at the open. (a) Compute the notional and the margin per lot, the total margin used, and the position's notional as a multiple of capital. (b) Compute the loss in rupees, as a multiple of the margin posted, and as a percentage of capital. What did the stop do? (c) Repeat (b) for a 20% gap. (d) The trader's rule is to lose at most 2% of capital if a 12% gap occurs. Compute the loss of one lot as a percentage of capital and the largest whole number of lots the rule allows. What instrument choices would respect the rule?