If we take a look at 10450 nifty March option we can see there is no open interest at the strike price and many other strike prices. How does one go about buying/selling options at those strike prices? How does one decide what is the right premium for the price? Is it simply you put any order and wait for any counter party to accept that?
I think someone who is interested to open in such a strike will first use some kind of fair pricing model like BS model to estimate an approx premium to place a bid/offer… and then ofcourse you have to wait…