Comment on Policy on settlement of compulsory delivery derivative contracts — Update Oct 2019
commented on
25 Mar 2020, 10:07 AM
Sudheer,
Since you have 1 OTM(short) and 1 ITM(long) position, this won’t be netted off. Yes, if you do not wish to exercise the long option, you will lose out on the intrinsic value of the contract. All Stock F&O contracts are settled physically, there won’t be cash settlement on expiry anymore.