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okay so again I would write down a few positions and we quickly try to understand what kind of payoffs do we have out of them do we have any profit or do we have any losses from them so let us say this is a scenario what convention I am going to use X is going to be the strike price P is the premium that weve paid and s is the spot price the price on the rate of expiry or maturity of the contract let us say strike price of a contract is 100 premium is 10 spot price turned out to be 90 its a long call option find out profit or loss how much loss of 10 yes so how do you read this you look at the word call say I have a right to buy at 100 I have a right to buy 200 at what price so they have a right to buy it 100 price in the market is 90 of course I wont buy 800 so that 10 rupees that I paid thats being wasted therefore I have a loss of 10 rupees next one loss of 14 years so how do you deal with this short coil means I have obligation to sell obligation to sell at a price of 100 some