Comment on Policy on settlement of compulsory delivery derivative contracts — Update Oct 2019
commented on
28 Oct 2019, 06:06 PM
Chandrasekhar,
Your buy price will not have anything to do with the physical settlement except for your P&L calculations.
If Exide,
a. closes above 180(the strike price)- The contract will be physically settled, if you have sufficient margins(as illustrated above), you will receive Exide shares equivalent to the lot size.
b. closes below 180- The contract will expire worthless and you there will no physical settlement obligation.