Of course the initial few chapters gave us an understanding on the call and put option basics, but the agenda now is to understand the basics of call and put options keeping both volatility and time in perspective. So let’s get started. 22.2 – Effect of Volatility We know that one need...
you have to pay 0.05% of the premium value on the selling side. So while buying 50 x Rs 100 you don’t have to pay STT, but while selling you have to pay STT of Rs 3.75 [0.05% of Rs 7500 (75 x 100)]. Usually the STT component while trading options is almost insignificant, in...