Ok... my questions is around PIPs. I saw somewhere listed was a formula for calculating pips. I understand it fairly well (I think).

My questions is basically around another formula i (thought) i saw. It was as follows and i'm basically just wanting to know whether it's true. it showed that each PIP ABOVE the strike that you were was a multiplier.

Price X Positions X PIP

ex.

30(price) X 2 (position) X 1 (PIP) = $

So my questions is really about being several PIPs over and if its a true "multiplier" or if it's a fractional increase due to Lots.

Any clarity is appreciated.

Dan