A Model for Calculating the Effectiveness of Writing and Hedging SBI Derivatives

Options in the stock market are a form of risk management that can help protect investors from various potential liabilities. Increased demand for derivatives is reflected higher trading volumes every day. Over time, it has been easier regular to get their hands on derivatives. The major Indian exchanges trade wide range financial goods, including This article explains how F&O National Stock Exchange (NSE) India. To write options, NSE typically employs call-and-put options. It may be able design ways achieve this goal by studying State Bank India (SBI) options chain first quarter fiscal years 22 and 23. Based current price, suggested computational approach writes call (CE) put (PE) upcoming month's settlement date. CE PE were written at prices twenty rupees lower than strike respectively. Furthermore, pricing both products reduced zero rupees. According our research, selling firms with minimal volatility good idea.