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  • #67152
    ESHWAR CHANDRA
    Participant
    Rank: Level 1

    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

     

    #69092
    EQSIS
    Keymaster

    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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