How to calculate money required to buy an option

I am looking for the method to calculate the money required to buy an option. For example unitech's call option with a strike price of 95 last traded at Rs.10, so how to determine the money required to buy this call option.

Any help will be appreciated......

You need to take into consideration the following to calculate the amount required to buy an option:
(1) market lot for the underlying script (e.g., For NIFTY, it is 50. For Unitech, it is 9000)
(2) value of premium at the selected strike price (This is Rs 10 in the given example)

Taking the above example, total amount required to buy Unitech call for strike price 95 would be (market lot * premium) = (9000 * 10) = 90000 Rs.

- Hitesh

it requires more than Rs 90000 to buy it. there is something missing.....

Well, I missed to add brokerage charges + taxes to 90000.
Experts, please correct if I am wrong.

absolutely simple lot size * option price + brokerage is the price u pay....here as pointed out abt 90,000...

NSE has revised lot sizes of a lot of stocks from June 26...u can chk http://www.nseindia.com/content/circulars/faop12491.htm

thank you hitesh and krishna for helping me. :thumb:

time factor also needs to be considered....If for expiry there is more days then you can think of paying high premium but if expiry is near then you don't need to pay higher premium.