- This topic has 1 reply, 2 voices, and was last updated 3 years ago by
John Moffat.
John Moffat.Viewing 2 posts - 1 through 2 (of 2 total)
-
Posts
-
aicca
- Topics: 27
- Replies: 10
- ☆
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 3.2×25(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%
John Moffat
- Topics: 57
- Replies: 51225
- ☆☆☆☆☆
One 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.
John MoffatViewing 2 posts - 1 through 2 (of 2 total)
- You must be logged in to reply to this topic.