What are the contract specifications of Sensex Options?
BSE’s first index options is based on BSE 30 Sensex. The Sensex options would be European style of options i.e. the options would be exercised only on the day of expiry. They will be premium style i.e. the buyer of the option will pay premium to the options writer in cash at the time of entering into the contract. The Premium and Options Settlement Value (difference between Strike and Spot price at the time of expiry), will be quoted in Sensex points The contract multiplier for Sensex options is INR 50 which means that monetary value of the Premium and Settlement value will be calculated by multiplying the Sensex Points by 50. For e.g. if Premium quoted for a Sensex options is 50 Sensex points, its monetary value would be Rs. 2500 (50*50). There will be at-least 5 strikes (2 In the Money, 1 Near the money, 2 Out of the money), available at any point of time. The expiration day for Sensex option is the last Thursday of Contract month. If it is a holiday, the immediately preceding busine
