Commodity option trading tutorial ppt
Premium increased to 10 rupees. July 6, at 6: Venu even though very clearly knows that the value of the land is much higher in the open market, is forced to sell it at a much lower price to Ajay. So what should Ajay do?
Of course, he will have to pay for the charges incurred like brokerage, transaction charges etc. Sir, I just want to know how to exercise call option on expiry, whether it is automatically done broker or i have to do something. You are doing extremely good job. Also, please remember this example, commodity option trading tutorial ppt we will revisit the same on a few occasions in the subsequent chapters.
December 20, at So effective profit would be Rs — Rs which is Rs So commodity option trading tutorial ppt do you think Ajay will do now? What benefit would Ajay get by calling off the deal before the expiry of 6 months? If you leave the option to expiry, that is considered as expressing your interest to exercise the option.
Another way to look at this is — For an initial cash commitment of Rs. The badla system no longer exists, it has become obsolete. Hi Just opened an account with Zeroda.
February 15, at 4: However in India from the time of inception, the options market was facilitated by the exchanges. May 25, at 8:
September 5, at July 21, at 6: Sir, how do we measure liquidity? March 23, at 1:
Here is the math that explains why it does commodity option trading tutorial ppt make sense to buy the land — Remember the sale price is fixed at Rs. When I asked, I was told that this is due to bid ask spread. He had paid Rs 1L 6 months in advance.