the Premium for call options dec strike price 97 in the question is 0.032 . It is given in the question that it’s in annual percentage
But in the answer part they have use 32 as the premium ie 3.2x25(tick value)x50( no of contracts)
Sir I don’t understand how they have converted 0.032% premium into 3.2 ticks.
The tick size is 0.01%
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Massie sep/dec15 or bpp 46
7y ago#1One tick = 0.01%, therefore 0.032% = 0.032/0.01 = 3.2 ticks
However you never really need to use ticks in the exam as I explain in my free lectures on this.
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