Comment on Policy on settlement of compulsory delivery derivative contracts
commented on
28 Aug 2018, 10:39 AM
Since you are short put options, you will be obligated to receive the shares in your demat on expiry. The stocks delivered will be at the buy price of 425(assuming Hexaware settles at 425 on Saturday).
Your loss for the short option position will be intrinsic value minus premium paid (25- 4.5= 20.5)
The P&L for the stocks delivered will depend on the price you choose to sell after it is delivered