Net Premium Query

F&O
1

I am new to option and i am learning hedging of option. I just analysed the following options and i didn’t really get what NET PREMIUM means. Sometimes it shows positive value and sometimes it shows negative. Is this the amount which i get when i sell options

hedging
hedging980×510 18.2 KB

|Span Margin|र 14,459.75|
|Exposure Margin|र 32,250.00|
|Value At Risk Margin|र 0.00|
|Extreme Loss Margin|र 0.00|
|Net Premium|र 35,521.25|
|Total Amount Required|र 46,709.75|

2

This is net Debit strategy, you won’t receive Premium, that is the Premium you will have to pay.

If you want to learn more about Options, head over to Varsity.