Comment on Zerodha - Margin Policies

Sukesh commented on 05 Nov 2014, 01:55 PM

Hi Nithin,

Thanks for a super quick response.

The reason i said that the option premium goes up as the value of the underlying market goes up is because i made a simple calculation using the Black Scholes option calculator.

Keeping everything constant (i.e, Interest Rate, Volatility, Time for Expiration & Dividend yield), i found that just by increasing the price of the underlying, the premium of ‘At the Money’ option increases considerably.

I have attached the screen shot from options calculator for reference.

Thanks

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