Put-call parity- risk free interest rate

Options & Futures
1

Hi ,



 This is with Regards to the Course 'Options Trading Strategies In Python: Basic'  - Section 2 "Options Nomenclature"



in put call parity formual , where can we get the risk free interest rate for Indian Stocks and Index.



Can i Use MIBOR or should i use Indian 10 year Bond  Yield %.



Please let me know where we can get thehistorical  risk free interest rate for Indian Stocks and Index.



Thank you !!!

With Warm Regards

Nandagopal

2

Hey Nandagopal,



Surely, you can go ahead and use the India 10-year bond yield data as the risk-free interest rate.

The historical values for the same, for any given date, can be fetched by visiting this page.



Additionally, I recommend you go through this article as you may find it interesting.

It sheds some light on what model and interest rate figures NSE uses, for computing Option IV.



Hope this was helpful!

3

Thank you Kevin!!!

Thank you very much!!!