Section C (4 Mark)

Nifty is presently at 2694. Mr. XYZ expects Nifty to fall. He buys one Nifty ITM Put with a strike price Rs. 2800 at a premium of Rs. 132 and sells one Nifty OTM Put with strike price Rs. 2600 at a premium Rs. 52.

What would be the Net Payoff of the Strategy?

• If Nifty closes at 2359

• If Nifty closes at 3561