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Constraints

NOT NULL CONSTRAINT -    Ensures that a column cannot have a null value. DEFAULT CONSTRAINT -    Provides a default value for a column when none is specified  UNIQUE CONSTRAINT -   Ensures that all values in columns are different  CHECK CONSTRAINT -   Makes sure that all values in a column satisfy certain criteria  PRIMARY KEY CONSTRAINT -   Used to uniquely identify a row in the table  FOREIGN KEY CONSTRAINT -   Used to ensure referential integrity of the data  Primary Key - is used uniquely to identify each row in a table . It can consist of one or more columns on a table . When Multiple columns are used on a table it is called composite key.  Foreign Key - Foreign key is a column or columns that references a column most often primary key of another table . The purpose of foreign key is to maintain referential integrity of the data. Pg admin  Data base - training - right click on training - query click  Always add semi colen to run the query  Int - integer  varchar - variable charact
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Options - Factors affecting option premium

 Factors affecting option premium -

1. Spot price - underlying asset price 

2. Exercise price or strike price - example - 100 strike price 120 so it will affect the price.

3. Volatility - high volatility 

4. Time to expiration - cp 18200 , now contract of 20000 so premium will not change , so june expiry contract will not have this close fluctuation.

5. Volume - more volume , more fluctuations 

6. Risk free interest rate - if interest rate increase , premium will increase. Interest rate can be any . It has a direct relationship because Risk free rate is always less then market returns now the same we invest in market , we will get more return , our return will be more than 5-6 % . 

Mutual fund we get 15% so this how we do , so the rate increases , volume increases , premium increases . 

The more time we will give the value will increase.

If risk free rate is less , the loan become costly the chances will we go in safe options .

So now for example banks and financial institutions are in options market , so if interest rate is more , more senior citizen will go for FD. 

Example - Fd  is risk free instrument interest rate increases , option premium will also increase. 


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