Calculating Option Prices

#1
Let's say I purchase Nifty Call Option 6000 for Dec series at 40 Rs. Now it is trading at 20. There are 8 trading days more before expiry. At current levels, how do I calculate what level of Nifty (6030?) achieved tomorrow will make the premium higher than 40?

Thanks.
 

Alchemist

Administrator
Staff member
#2
You can use Black-Scholes model, but it isn't always accurate.

Option prices are market-driven.

Models can give you a rough idea about what the prices should be, but in the end, option prices are decided by the supply and demand in the market and not any model or formula.
 
Top