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Question: Suppose icici bank is trading at rs.1032 at cash market and rs.1030 at future stock, which is the best one to?

(Posted by: Deepak Bhor on 2010-09-06 02:55:24)

Suppose Icici bank is trading at Rs.1032 at cash market and Rs.1030 at future stock, which is the best one to buy and why?

Posted by: bhanwar b on 2010-09-06, 04:24:35

In cash purchasing you have invest say 100 shares rs103200/ - by taking immediate delivery. but in future by this margin you can purchase about 700 shares. so in future book about 7 times of profit/ loss than in cash on up/ down with a chance of time till expiry date.