The premium of each strike is different and is derived from a mathematical formula called as Black-Scholes Model, this is a very complex pricing model, which involves integrations and probability methods. We will not discuss it in detail, however, the Indian Option premium is based on this model.
from Economic Times https://ift.tt/C7BeHdq
from Economic Times https://ift.tt/C7BeHdq
Learn With ETMarkets: Types of strike prices and their values
![Learn With ETMarkets: Types of strike prices and their values]()
Reviewed by News Today
on
April 08, 2023
Rating:
No comments: