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?


The London Stock Exchange stock option contract specifications are listed on their website and do indeed state a multiplier of 1,000 and price value of 0.01 = 10 pence.


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  • thanks. Therefore the P&L calculation is correct? – Mathlearner May 13 at 16:46
  • Assuming you do reach maturity in those conditions, that looks about right. If this is before maturity then this is not right. – ApplePie May 13 at 20:49

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