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.
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?