Sir, All Futures and Options are derivatives of Stock price, means their value depends on Stock price. Stock Price does not depend upon Future and Option. When we buy a Future or option then we get to control a Big Asset with a margin of 15-20 Percent. Means If we buy 100 shares of SBI @ 235, then we need to pay Rs 23500 (Rs 235*100). Its Future is trading at 237.10 (which has a premium of 2.10 Extra). Its value is at Rs 2,37,100 (Two lakh , thirty seven thousand and hundred rupees Only). To control future of SBI , we need to pay approx 15% which comes out to be RS 38000. So just by paying little Money more we can Make more Profit , 10 times, Rs 1000 per 1 Rs movement of Future , compared to RS 100 per 1 Rupee movement of stock. Future has a Premium and it is little expensive because of holding power for 1 Month to 3 month. Also you just need to pay MTM to carry this position compared to Full value of stock of 100 shares . The premium and Time value of Stock makes it expensive a Bit. But gives you benefit of controlling Big Asset with Only 15-20 %
