Comment on Policy on settlement of compulsory delivery derivative contracts
commented on
15 Oct 2018, 04:53 PM
If you are an option buyer, you have the option of ‘do not exercise’ and we will use this option if you don’t have the funds/holdings. If you are an option seller, you don’t have this option and you are obligated to give or take delivery. This is the same reason, the margins are higher closer to expiry to cover for the delivery risk.