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How are premiums calculated for choices? any method?
is there any M2M in choices ?
Learnt purchaser will free whole premium paid if goes in opposition to his view? And Vendor will pocket the overall premium paid ? however that appears not taking place if purchaser or vendor sq. off place earlier than expiry? Easy methods to calculate revenue and lack of choices premium for ongoing commerce earlier than expiry?
is there any diff in calculation on expiry(excersising) or earlier than expiry?(squaring off)
I’m beginner right here ? can some please make clear with this ? thanks prematurely…
Within the cash name choices:
Intrinsic Worth = Worth of Underlying Asset – Strike Worth.
Within the cash put choices:
Intrinsic Worth = Strike Worth – Worth of Underlying Asset.
P&L =( Intrinsic worth – Premium Quantity paid) × lot amount dimension
Nifty 50 & Financial institution Nifty had been money settled.
And There is no such thing as a M2M IN OPTIONS
And a few choices expire with some premium left with the contract
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