
256 Derivatives and Risk Management
(ii) On July 5, Tata Steel price increases to INR 444. How
many new contracts will be introduced on July 5?
11. e CNX Niy index is at 4,600 on November 1, and new
options contracts will be introduced that day.
(i) How many options contracts will be introduced on
November 1, and at what exercise prices and exercise
dates?
(ii) On November 10, the CNX Niy index decreases to
INR 4,440. How many new contracts will be introduced
on July 5?
12. Indian Textiles has 1 million outstanding shares and the
share price on September 1 is INR 560. Call options with
expiry on Nov