ATM call value vs Nifty spot value.

#1
Hello All, i have a small query about ATM pricing of Options for Calls.

Suppose NIFTY as of today is trading at 5350. So which strike price we need to consider for ATM Call option.? Will it be CE5400 or CE5300.

I am actually confused owing to the definition of ATM which says Strike price = Index Level. So where will the index range between 2 strike price falls in ATM.?
 

DanPickUp

Well-Known Member
#2
Hello All, i have a small query about ATM pricing of Options for Calls.

Suppose NIFTY as of today is trading at 5350. So which strike price we need to consider for ATM Call option.? Will it be CE5400 or CE5300.

I am actually confused owing to the definition of ATM which says Strike price = Index Level. So where will the index range between 2 strike price falls in ATM.?
Dear Jatin.great

Use this link to calculate your option price:

http://www.option-price.com/index.php

If what ever market is where ever, just calculate and you get your fair value price.

If you still do not understand that kind of terminology, then you need to read a book which educates you about the subject.

Are you willing to read such a book or maybe two or three?

DanPickUp
 

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