nifty is at 6695, price of a ITM put at strike 6900 is 175. theoretically the option’s intrinsic value is 205, since it have 21 days left for expiry,there must be some time value also,so the price of the option should me 205 + time value,but why the price is just 175?
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When i saw your query, for a moment I was salivating at a possible risk free trade 
Market on Friday made a high of 6720. 6900 is a Deep ITM options…any deep option has a delta of 1, which means they move in line with the spot market.
So, I’m assuming when Nifty hit 6720…the 6900 PE got traded at 175 and after that there were no further trades in the counter…hence what you see is the Last Trade price of 175.
Options can never be below its intrinsic value…even when you set Volatility to zero!
So sorry…there is no free lunch for us
Happy Hunting.
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thanks karthik… i forgot the fact that its LTP…
Doesn’t the contract trade below Intrinsic value on expiry day ???.. To account for the transactions costs, and negative demand (due to ppl. squaring off to avoid STT) ??
True. For example lets say on expiry day Nifty is trading at 6500, the 6700 call has no intrinsic value but still around 3:20 or 3:25 you will notice 6700 trading at something like 10 or 20 paise. Even though the market expiry will happen in 5 mins, theoretically there is still a chance for market to go up. The value of this probability is what is reflected on the premium.