What are the contract specifications and trading parameters of CNX BANK Nifty Options ?
The underlying instrument of S &P CNX BANK Nifty Options is the index S &P CNX BANK Nifty . These contracts can have a trading cycle of maximum 3 months- the near month (one), the next month (two) and the far month (three). With the expiration of near month contract on the last Thursday of each month, a fresh contract is introduced on the very next day. The contract will expire on the previous trading day if last Thursday of the month is a trading holiday. All CNX BANK Nifty Options contracts are of European Style i.e. these contracts can be exercised only on the expiration date. The minimum value of a CNX BANK Nifty Options contracts is Rs2, 00,000. Tick size of CNX BANK Nifty Options is Re0.05. On the day of introduction of Options contract, Base price of CNX BANK Nifty Option contracts would be the premium calculated through Black-Scholes model, which is the theoretical value. In the following days, last half an hour weighted average price is considered as the base price. If the Opt
