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As Mr. X is long the option contract. The option will be in the money if the price of an index increases at maturity. The net gain in the transaction will be calculated after deducting the premium paid for the contract. Net gain = price of an index index at maturity – strike price – premium paid = 1550 – 1500 – 20 = 30
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With respect to the Finance Bill, consider the following statements:
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II. Amendment
III. Remission
IV. Alterati...
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