
Single Stock Futures and Stock Index Futures 163
12. On March 10, Crompton Greaves shares are selling at INR
322.80. You believe that the Crompton Greaves share price is
likely to increase in the next three days. You want to speculate
on this information. You nd that there are futures contracts
available on Crompton Greaves with a contract size of 1,000.
e March contract with expiry on March 29 is selling at INR
335. You decide to speculate using 10 contracts.
(i) Explain how you would speculate using a futures
contract.
(ii) If the market price of Crompton Greaves is INR 338
and the March futures price is INR ...