I have a doubt
In options we have to pay premium right
So example ( Nifty ltp 11000)
If I buy Nifty 12000 ce at 100rs option ×25qty.
Now my approx margin required is 2500 .
Now Nifty is trading at 12000 and option ltp is 1000
So technically profit is approx 22500rs
So can u explain what is the premium which I am paying and profit which I am receiving.
Would really appreciate if you reply