NISM Series XVI - Commodity Derivatives Exam Notes
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Option price/Premium is the price which the option buyer pays to the option seller.
Lot size is the number of units of underlying asset in an options contract.
Expiration Day is the day on which a derivative contract ceases to exist. It is the last trading date/day of the contract.
Spot price is the price at which the underlying asset trades in the spot market.
Strike price or Exercise price is the price for which the underlying security may be purchased (in case of call) or sold (in case of put) by the option holder, by exercising the option.
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