Hi, Can you please clarify how the price of Option u have calculated as
A 9000 call has a value of 1000, a 8000 call has a value of 2000 and so on If Bank nifty closes at 10000,how are you determining price .Should the price be 1000 or any premium attached to it for 8000 call in above case.
Also How is the price of a call and put of any scrip/Nifty determined ?
e.g While posting this below are the closing of Nifty
NIFTY 30Jul2015 8381.85
however how is the price of all the call and put option determined. What is the algorithm for calculation ??
can you suggest a good book for my clear understanding of Options/Call/Put