Comment on Policy on settlement of compulsory delivery derivative contracts — Update Oct 2019
commented on
09 Apr 2020, 07:13 PM
Unlike the classical definition of an options contract: Options are financial derivatives that give buyers the right, but not the obligation, to buy or sell an underlying asset at an agreed-upon price and date, it is now compulsory to exercise the option if it is deep in the money. If it is close to the money (CTM) as explained, it will not be exercised if the required margin is not maintained. Is there another way to disable exercising for CTM contracts?