if the exercise price is INR 260 and the call option price is INR 30, a person will buy a call option only
when they expect the share price to go beyond INR 290 (INR 260 + INR 30).
A call writer gains as long as the share price does not go beyond the sum of the exercise price and the
option price, or as long as S
T
is less than (S
X
+ C
0
). us, a person will write a call only when they believe
that the share price will not increase beyond INR 290 (INR 260 + INR 30).
Note that the belief about the movement of stock prices could be dierent for the call option writer
and the call option buyer. While the call option buyer always believes that the stock price would increase
and go beyond (S
X
+ C
0
), the call
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