Comment on "STT Trap - Options Expiry

Comment on STT Trap - Options Expiry - NSE BSE MCX-SX

viral commented on 11 Jun 2015, 10:45 AM

Hi,

I just want some clarification on this.
Suppose I buy a call option of XYZ company with Strike Price 120 and Spot Sprice of 100 at 5Rs.

Now on the last thursday the Spot Price rised to 118.
What will be the premium price of the Call option.

will it be 0 as it is not crossing 120 or it will increase as from 5Rs to some amount as the Spot Price I bought at is increased by 18 rs.

Please help me on this.