Is NIFTY' OVERVALUED? Fundamental View Based on P/E, P/B, Div'. Yld.
(A) Nifty' 50’s Price to Earnings (P/E)
Price-to-Earnings ratio (P/E) of the NIFTY' is
a simple market-valuation ratio.
A general guideline to help understand the valuation is:
P/E > 24 = Dangerously overvalued
P/E >...
INDIA VIX and Options - Theoretical Approach.
What is relation between the volatility index (VIX) and the options pricing.
In Black Scholes model of options pricing, the call and put options pricing is dependent on following 5 factors:
1) Price of the underlying
2) Strike price
3) Risk free rate of interest
4) Time to expiry
5) Volatility
Out of these five...