Hi
I have a query regarding options. Its a very basic one.
Suppose I buy a nifty 4500 Aug call@25 then a premium of Rs.1250 is debited from my account. Spot nifty is 4350. For eg on 4th Aug spot nifty is 4425 and call value is 35 then can i make profit of Rs.500 (Rs.35-25=10*50=500) by suqaring off at Rs.35. In that case what happens to Rs.1250 initially debited?
regards
Sumaant
I have a query regarding options. Its a very basic one.
Suppose I buy a nifty 4500 Aug call@25 then a premium of Rs.1250 is debited from my account. Spot nifty is 4350. For eg on 4th Aug spot nifty is 4425 and call value is 35 then can i make profit of Rs.500 (Rs.35-25=10*50=500) by suqaring off at Rs.35. In that case what happens to Rs.1250 initially debited?
regards
Sumaant