What is the risk free rate that we should consider to calculate the option pricing or IV (other than last day of expiry) ?
a) 0.01% as a nominal rate because we are not loosing any opportunity cost for money in trading account.
b) 10% as considered by NSE ?
c) State Bank Saving Interest Rate @ 3.50%
d) Government Bond 1 Year Rate @ 6.25%
What is the risk free rate that we should consider to calculate the option pricing or IV ( last day of expiry) ?