Calculate Option price

#1
Hi All,
I am new to option trading and want to learn how to calculate option price. I am planning to trade in stock i.e. American style. Which method or Model is best for it.
Can any one suggest the link or good book which I can read(Indian context).

One more thing: does arbitrage exists in the market?

Nishant
 

Capricorn

Well-Known Member
#3
You could use the binomial model calculator. Finally it actually boils down to your strategy. I found this one quite useful. Nothing Indiaspecific .Options: Perception and Deception : Position Dissection, Risk Analysis, and Defensive Trading Strategies ,Charles M. Cottle
 

praveen98

Well-Known Member
#4
HI,
PLEASE GO THROUGH NCFM OPTIONS MODULE STUDY MATERIAL. AND REGARDING OPTION VALUE CALCULATOR....PLEASE VISIT CBOE.COM AND IN TOOLS SECTION YOU CAN FIND OPTION CALCULATOR..WE CAN CALCULATE FAIR PRICE OF OPTION THERE.

ALL THE BEST
PRAVEEN:thumb:
 

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