## Comment on Varsity March 2015 update

If stock X spot price is 1850 at the time of buying, premium-10. And I take 1900CE and on expiry date strike price becomes 1950, premium-30. Lot size=100

So if I will square off my position I will get profit of 30-10=20*lot size(1000)= 2000

If option gets expired on last thursday then profit will be 1950-1850= 100*lot size(100)= 10,000.

Is my understanding correct for both the cases?

what will be the STT calculated in both the cases?