Sirs,
Will the seniors guide me as to what are the mispriced options in respect of Nifty Index?
for example :
a web site says that following options are mispriced.How? I want to know!
of course without any involvement of complicated mathematical equations of black scholes.
nifty is at 3480.75.(24thapril,2009) Strike price 3100.00 call @378.75 for (expiry 30-4-09) is stated to be mispriced. and similarly NIFTY 3480.75- strike 2000.00 call @ 1460.00 is mispriced.How? Is it that Intrinsic value of these calls ie.3480-3100 = 380 and 3480-2000 = 1480 is more than the premium, which ought to be and the remaining prremium iis time value,? what are the methods to determine whether an option is mispriced.Or the therotical price given by the option calculators determines whether an option is mispriced?
Please explain if possible with real examples.thanks
vkwd7
Will the seniors guide me as to what are the mispriced options in respect of Nifty Index?
for example :
a web site says that following options are mispriced.How? I want to know!
of course without any involvement of complicated mathematical equations of black scholes.
nifty is at 3480.75.(24thapril,2009) Strike price 3100.00 call @378.75 for (expiry 30-4-09) is stated to be mispriced. and similarly NIFTY 3480.75- strike 2000.00 call @ 1460.00 is mispriced.How? Is it that Intrinsic value of these calls ie.3480-3100 = 380 and 3480-2000 = 1480 is more than the premium, which ought to be and the remaining prremium iis time value,? what are the methods to determine whether an option is mispriced.Or the therotical price given by the option calculators determines whether an option is mispriced?
Please explain if possible with real examples.thanks
vkwd7