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Dear Sir,
Please refer the image which I uploaded as shown, My doubt is regarding options trading
NIFTY SPOT PRICE –8778
STRIKE PRICE–8800
LOT SIZE–225
LTP OR PREMIUM-46.80
My Choice is OPTION CALL
It implies I am going to make profit if SPOT PRICE GOES BEYOND STRIKE PRICE
MY Doubt is
Am I paying the premium of 46.80 for total lot size of 225 or I am paying 46.80 for each quantity of 225
OPTION I—46.80 FOR 225
OPTION 2— 46.80X225=10530
WHICH ONE IS CORRECT AMONG BOTH THE OPTIONS
PLEASE CLARIFY THE DOUBT
We pay premium for every unit.. Hence the price is always quoted for one qty
OPTION 2— 46.80X225=10530 – is correct
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