Good evening Sir !At time 2.30.43 , illustration 3 ,there they said put option of 300 is written means we have obligation to buy the shares right sir..,you said we have right to sell.., however,the answer is same in the both cases..,we have to take approach as writer of option right sir? Please clarify on the same sir
The Price of an option whether you buy the option or write ( Sell) the option will be the same. The process is the same. What the buyer buys, the seller sells. In the question it says an option can written. The Q does not say whether You are the Seller or the buyer. It is always easy to compute the price when looking from the buyer perspective. Hence we solved that way
1:27:05 - illustration 17
Thank you sir very helpful
Thank you sir, for uploading the video.
Most welcome
Good evening Sir !At time 2.30.43 , illustration 3 ,there they said put option of 300 is written means we have obligation to buy the shares right sir..,you said we have right to sell.., however,the answer is same in the both cases..,we have to take approach as writer of option right sir? Please clarify on the same sir
The Price of an option whether you buy the option or write ( Sell) the option will be the same. The process is the same. What the buyer buys, the seller sells. In the question it says an option can written. The Q does not say whether You are the Seller or the buyer.
It is always easy to compute the price when looking from the buyer perspective. Hence we solved that way