Option premium of a contract on Exchanges like NSE, BSE is similar to approaching a landowner to buy a piece of land with a small amount paid him upfront. Example…
Option prices are determined by current market price of the underlying asset, the strike price of the option, the time remaining until the option expiration date, and the expected volatility…
Futures and Options differ from each other with respect to the "obligation" to buy or sell something at a certain price on a specific date in the future. Read more...…
Moneyness of an option refers to the relationship between the current price of the underlying asset and the strike price of the option. An option can be classified as in-the-money…
Order placement and execution are well-defined and regulated process in the Indian market exchanges. The process ensures transparency and fairness in trading and helps to maintain the integrity of the…
Underlying asset is a financial instrument or a physical commodity that serves as the basis for a financial derivative. In this article, let us delve deeper into the subject with…