One should not think too much about recent fluctation.
Bharti got listed @ 45, went to as low as 23 before touching 500.
Check the attached graph.
please can anyone guide on how to learn trading in F&O.;
I MEAN how to read data printed in newspapers regarding various series.
can someone tell me what will happen to the markets now....given taht sensex has hit 17200 in 6 months time...is there going top be a correction..i mean if anyone can tell me in detail....i understand tech jargon
rohshan86 Sayscan someone tell me what will happen to the markets now....given taht sensex has hit 17200 in 6 months time...is there going top be a correction..i mean if anyone can tell me in detail....i understand tech jargon
Have you checked Monday (Mumbai) ET Edition.
Is it different this time...
hi guyzzz am new to here..so wassup this thread abt stock recommendation
or stock market studies !!
Hi guyzzz i gt a doubt regarding a particular company..
Name is Indage Vinters..
its currently quoting @ 65...bt the thing is its book value comes to around 177... is this good or bad.... i think its definte buy...
please enlighten me on wat is book value and why the price of above company is very less than tat value :lookround::lookround:
Check these links
@ Rediff - check commentary at end of page by various users
@ Google News - more bad news on international front
Indage Vintners in dire straits. Employees go to police
@ Google
Most imp. Company has not declared their last year financial result.
hi thanks bro...bt wat abt book value nd current price...since b value is much more does't this one make a good buy ??
lglijo Sayshi thanks bro...bt wat abt book value nd current price...since b value is much more does't this one make a good buy ??
market value/price is the present value of all expected future cash flows from the instrument. book value is net worth / no of eq shares. but book value may not be equal to the amount eq shareholders will get in case of liquidation. (this discrepancy may be due to lot of reasons like diff in book/current value of assets, etc)
so, market value
hi puys,
i cam across this interview of Rakesh Jhunjhunwala in the economic times...
thought you all would like to read it...:)
The journey of Rakesh Jhunjhunwala- Interviews-Opinion-The Economic Times
As US GDP has expanded by 3.5% the previous quarter, do U see SENSEX reaching 17k again???
wat do u think abt the current monetary review?? RBI lowering expected GDP figures and withdrawing from the expansionary moentary policy... does it make logical sense???:banghead:
I think increase in SLR as pointed out by Ashish is not going to have much impact. But, it's a signal from the RBI about it's future policies that it has started withdrawing the stimulus package due to the fear of inflation. The extra liquidity pumped into the economy didnt percolate enough into the economy as banks were not comfortable in lending. And we don see the cost of funds getting cheaper for companies. Even 10 yr Gsec rate has reached 7.4%. (which was predicted to reach 6.7% by march,10 previosuly) I think RBI has acted a bit too early.
Hi PUYs,
a small doubt about option pricing...
(American options are options that can be exercised at any point in time before expiry whereas European options are oprtions that can be exercised only on the expiry date)
At hindsight, american optionholder gets an additional right to exercise on any date and hence, american options shld be priced higher.
But, when an option is in-the money (american/european), the investor can sell it and book profits (assuming ample liquidity).. In that case, the extra right on american options doesnt make any sense..
Pls throw some light on this
Hi PUYs,
a small doubt about option pricing...
(American options are options that can be exercised at any point in time before expiry whereas European options are oprtions that can be exercised only on the expiry date)
At hindsight, american optionholder gets an additional right to exercise on any date and hence, american options shld be priced higher.
But, when an option is in-the money (american/european), the investor can sell it and book profits (assuming ample liquidity).. In that case, the extra right on american options doesnt make any sense..
Pls throw some light on this
It is easier to price an european option compared to american option, however, european options cannot be terminated anytime before expiry. For this reason, european options trade in discount compared to american option, however, at the end of expiry if both options are in the money, both will have same payoff - time value will die out, the options will trade at fair value and will stand expired.
konqueror_vivek SaysIt is easier to price an european option compared to american option, however, european options cannot be terminated anytime before expiry. For this reason, european options trade in discount compared to american option, however, at the end of expiry if both options are in the money, both will have same payoff - time value will die out, the options will trade at fair value and will stand expired.
I understand this vivek.. But my ques is:even before expiry, the additional value of american option is of not any use as i can sell my european option and close my position (which ll be the same case when i exercise my american option before expiry).. so, where does this additional premium for american option come from?? (does it make sense?)
(And i remember reading somewhere that it doesn't make any economic sense to exercise an american option before expiry)
FT.com / Reportage - The formula that felled Wall St
came across this awesome article on the copula function which led to the collapse of Wall Street..:wow:
came across this awesome article on the copula function which led to the collapse of Wall Street..:wow:
I understand this vivek.. But my ques is:even before expiry, the additional value of american option is of not any use as i can sell my european option and close my position (which ll be the same case when i exercise my american option before expiry).. so, where does this additional premium for american option come from?? (does it make sense?)
(And i remember reading somewhere that it doesn't make any economic sense to exercise an american option before expiry)
Two things -
1. Did you mean - if european option is in the money you can exercise the option before expiry ? This is wrong assumption
2. American options can be exercised before expiry if the contract is in the money, it makes economic sense to exercise option before expiry if it is in the money.
While using Black Scholes pricing model, we assume volatility to be constant which is one wrong assumption, and because of same reason you will see all options underpriced.
I understand this vivek.. But my ques is:even before expiry, the additional value of american option is of not any use as i can sell my european option and close my position (which ll be the same case when i exercise my american option before expiry).. so, where does this additional premium for american option come from?? (does it make sense?)
(And i remember reading somewhere that it doesn't make any economic sense to exercise an american option before expiry)
Guru if its ITM, the option should be exercised. just imagine, it nifty hits 5300 in next 2 trading days, then if i holding a call option, i will take my profit and sit tight. The market may fall to under 5000 and the series may end below 5000.
what does it indicate if in the futures market, the contract prices r moving upward? can someone expalin the mechanics behind the price movements?
this type of behaviour is seen mostly when we expect the contracted thing to break some resistance level or sum expected good news..
optimism...
purely from a day to day traders perspective i am saying..
On Nov 4 when FOMC announced that interest rates may remain benign for some more time, interest rate futures price moved up!!!. i always thought the futures prices reflect the expectations of the market in the near term. But this movement left me confused. obviously i lack a good understanding
. can anyone enlighten me....