Comment on STT Trap - Options Expiry - NSE BSE MCX-SX

Venu commented on 28 Dec 2016, 05:34 PM

1. All options that trade in the Indian markets today are of Europeran type which means that they can only be exercised upon expiry, not prior to that. If the stock is trading at 250, your option has an intrinsic value of Rs.20/- If on expiry, it closes at 250, you’ll get a credit of Rs.20

2. As I mentioned in the above point, the option to exercise isn’t available. If the stock closes above 259.65, yes, you lose the premium.

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