@Zerodha,
The spreadsheet would be of great help to noobs like me. So going short on the Nifty amounts to writing options, is it? I didn't know that.
Any idea what would be the scenario if the buyer exercises it before expiry?
Going by the same scenario that I mentioned, lets say 6100PE ends up at Rs.120 on expiry. What would be my liability if I am
1) Hedged.
2) Not Hedged.
Scenario 2 would basically mean that I wrote a naked put. I just don't know how Nifty options valuations are arrived at when exercised. Any link to some resource would be of immense help.
Thanks
The spreadsheet would be of great help to noobs like me. So going short on the Nifty amounts to writing options, is it? I didn't know that.
Any idea what would be the scenario if the buyer exercises it before expiry?
Going by the same scenario that I mentioned, lets say 6100PE ends up at Rs.120 on expiry. What would be my liability if I am
1) Hedged.
2) Not Hedged.
Scenario 2 would basically mean that I wrote a naked put. I just don't know how Nifty options valuations are arrived at when exercised. Any link to some resource would be of immense help.
Thanks