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What is lot size, expiry date, strike price, and premium?

Lot Size: Every option has a lot size, which varies from stock to stock. For example, IDFC bank’s options have a lot size of 19,000 shares, whereas NIFTY’s index options have a lot size of 75 shares.

Expiry DateEvery stock/index option has an expiry date. It is the last date on which a holder can exercise their right to buy or sell their options contract/s.

Strike price: Strike price is the price in a contract at which its underlying stocks can be bought or sold. The strike price for a call option is the price at which these underlying stocks can be purchased (on or before expiry). In put options trading, it refers to the price at which these underlying stocks can be sold (on or before expiry).

Premium: Options themselves don’t have an underlying value. Accordingly, an option’s premium is the total amount of money an investor has to pay to purchase an option.
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