i am pramod from hyderabad.Please clarify my doubt regaring index options.
On 28th april 2008 i have buyed put option of strike price 5100 at 147 rs/- of 50 lot size. on the same day Nifty closed at 5089 and the price was 162 rs/- so here i am in-the-money i.e am in profit.
but am really confused how to calculate profit provided with above data.
1)is it (162-147)*50= 750 rs/-
or
2)is it (5100-5089)*(162-147)*50=8250 rs/-
i couldnt understand how to calculate.
even though the Nifty index is not below put option 5100 the price is above 147rs/- few times so can i sell at this time also for less profit?
PLease am really in need to get clarified by this...Thanq.
On 28th april 2008 i have buyed put option of strike price 5100 at 147 rs/- of 50 lot size. on the same day Nifty closed at 5089 and the price was 162 rs/- so here i am in-the-money i.e am in profit.
but am really confused how to calculate profit provided with above data.
1)is it (162-147)*50= 750 rs/-
or
2)is it (5100-5089)*(162-147)*50=8250 rs/-
i couldnt understand how to calculate.
even though the Nifty index is not below put option 5100 the price is above 147rs/- few times so can i sell at this time also for less profit?
PLease am really in need to get clarified by this...Thanq.