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HOW TO CALCUTE OPTION PREMIUM.
WHEN WE SPREAD PREMIUM ON MONTHS
AND WHEN WE DIVIDE PREMIUM BY 100
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INTERESTI am not sure what you are asking. Please be a bit more specific.
If you are talking about interest rate options then you always divide the premium in the table by 400. 100 because they are given in percentages, and 4 because they are always three month futures (so 4 lots of three months in a year)
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