The situation
A buyer pays ₹12 per share for a call with strike ₹150. The underlying closes at ₹158 on expiry.
Your task
Is the call in the money and did the buyer profit?
Reveal step-by-step solution
Set up the problem
Intrinsic payoff = max(₹158 − ₹150, 0) = ₹8.
Work through the numbers
Profit before fees = ₹8 − ₹12 = −₹4. Expiry break-even is ₹162.
Interpret the result
The call is in the money and the buyer still loses ₹4 per share. Multiply by contract units for total P&L.
What to remember
At expiry, compute payoff first and subtract premium once.