Comment on Policy on settlement of compulsory delivery derivative contracts — Update Oct 2019

Ajit commented on 27 Jun 2020, 11:26 PM

“Policy regarding Close to Money contracts (CTM)”
For long call, the lack of fund balance is used to decide “Do Not Exercise” for CTM strike. But what is the criteria for long put? Is it based on if the client has lack of shares?

In the trading platform, can there be a feature for the option buyer to request “Do No Exercise”? Instead of deciding based on the available fund (or share holding)? Because, sometimes, one may have enough balance in the account (or shares in the account), but the wants to request “Do Not Exercise” for CTM strike?

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