How can the option premium be below its intrinsic value?

[Jason_Castelino]

Why options were trading at discount?

Total the bank nifty closed at 15:26 the market was trading above 36526. But the bnf 36500 ce was trading at just 7 rupees even though its intrinsic value is 26 rupees. If I am not mistaken that is 18 rupees discount. the discount was more than double its price. So why was this the case? If someone held onto to the option they will be paid the 26 rupees intrinsic value, right? Is there a greater reason like margin requirements or something I am not aware of? Or is this just the options market pr…