All about future and option trading basics


October 23, at Ajay has been informed that in the next 6 months, a new highway project is likely to be sanctioned near the land that All about future and option trading basics owns. However for Nifty there are several different expiry options. Consider this as a non refundable agreement fees that Ajay pays Against this fees, Venu agrees to sell the land after 6 months to Ajay The price of the sale which is expected 6 months later is fixed today at Rs. The explanations are extremely lucid.

September 14, at December 5, at Sarath — there are two things here.

April 19, at 7: Else exchange will exercise that option on our behalf and charge huge penalty. Nifty is a well diversified basket of stock with representation of nealry 21 sectors. Also, please remember this example, as we will revisit the same on a few occasions in the subsequent chapters.

February 14, at 6: October 21, at 1: Hence the Interest cost opportunity cost should also be factored. So, please tell me whether i was doing any wrong process or there is something about call square off before expiry which i dont know.

Just finished reading the Futures module. Ajay has been informed that in the next 6 months, a new highway project is likely to be sanctioned near the land that Venu owns. Finally, it expired worthless resulting in a loss. January 9, at 8:

Options premiums have multiple forces acting on them simultaneously. If the highway indeed comes up, the valuation of the land is bound to increase and therefore Ajay would benefit from the investment he would make today. July 26, at So, please tell me whether i was doing any wrong process or there is something about call square off before expiry which i dont know.

There is such a relationship between the two indices, right? I would suggest you try out Zerodha Margin calculator for this — https: December 4, at 9: Everything about Nifty Bank is here — http: February 12, at

I need to execute the below orders 1. May 28, at 5: No, all derivative contracts are routed via the exchanges. Ajay is actively evaluating an opportunity to buy 1 acre of land that Venu owns. Is that all and no Margin is blocked?

Another way to look at this is — For an initial cash commitment of Rs. November 15, at 9: Can you please clarify the logic behind option pricing. December 12, at 6: