When does the buyer & seller of a call option benefit in the stock market?
The buyer of the call option benefits when the underlying asset's price is above the strike price at the contract's expiry. Conversely, the seller gains when the price remains below the strike price at expiry.
For instance, Mr. Verma buys a call option for Infosys shares with a strike price of ₹1,200, expiring in a month. If, by expiry, Infosys shares climb to ₹1,300, Mr. Verma benefits. However, if the shares remain at ₹1,100, the option's seller, Mrs. Kapoor, stands to benefit.
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