: Calculating Options P&L on UK stocks Am I correct in thinking that in the UK stocks trade in pence i.e. a value of say 455 would be £4.55. Also stock options on UK based stocks (on the LSE) are for 1,000 shares. If so,

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Calculating Options P&L on UK stocks
Am I correct in thinking that in the UK stocks trade in pence i.e. a value of say 455 would be £4.55. Also stock options on UK based stocks (on the LSE) are for 1,000 shares.

If so, is the following the correct calculation for the profit on a long put position.

Given:

Stock XYZ at 500
Strike = 400
Cost per contract = 28
No contracts traded = 1

Then the net spend = £280

P&L if stock goes to 200 = ((400 - 200)-28)*1000 / 100 = £1,720

This is entirely theoretical, but just want to check I have the profit calculation correct?

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