Do indian options use libor as the risk free rate?

General
1

@nithin @siva @Sensibull

which interest rate is used as a risk free rate in indian context and for the option pricing models?

Many in the international finance community believe that the treasury rates are artificially low due to regulation, so libor rates are usually considered as the risk free rate. Since indian treasury rates are greater than libor what is the reasoning behind this theory and is it true?

2

Hello, could you kindly explain what libor rates are, I understand what treasury rates are…

3

@shashankgupta

libor rates are london interbank exchange rates. They are the weighted average of all the lending rate offers from many different banks around the world.

4

Mibor rates in India.

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5

@Aditya_Bhat , thanks