Comment on Policy on settlement of compulsory delivery derivative contracts — Update Oct 2019
commented on
21 Apr 2020, 07:30 PM
Vinu,
On expiry day, the close price of the option doesn’t matter. The settlement price for the option is determined from the settlement price of the underlying(spot).
In this case, since there is no intrinsic value(Spot is lower than the strike), the option will expire worthless.