Suppose i buy a nifty option lot size 40 at 50 rs.So what is the premium i pay? is it just 50 or 4050?.Also whats the maximum i can loose 50 or lot size50
Lot size of Nifty option is 75 and of Bank Nifty is 40.
Hypothetically, if I do consider Nifty lot size to be 40 and a Nifty option premium to be 50 then to buy this option you have to pay Lot size x premium that is, 40 x 50 = Rs. 2000 which is also the maximum that you can loose.
Brother I am wondering,which calculations did u do to come at the premium value of 4050…