Hi Sameer,
i'm new to options. Need help. I'm calculating the Call and Put premiums for TATASTEEL(I used American Style options calculator).
Date - 30 Sept, 2011.
Price - 415.25.
Strike price - 400
Interest rate - 9.00%
Volatility - 37.28%(I got this from Khelostocks.com)
Expiration Date - 25 Oct
CALL - 25.863 PUT - 8.335
Are these values correct or do i need to change any input parameters.
Also plz tell me what to put for Interest rate and from where to get the volatility for particular stocks in calculation.
The current price for the same options are
CALL - 27 PUT - 17.40.
Why is there such a difference and what should be my trading strategy in these?
Eagerly awaiting your reply..
Thnx
Nitin