Comment on Policy on settlement of compulsory delivery derivative contracts — Update Oct 2019
commented on
19 Jan 2021, 05:38 PM
I have 3 questions. Anyone with knowledge please reply.
1- In a Bull call spread , will there be delivery obligation of the long call option if the short call option strike is OTM? Say long call strike is 1960ce…short call strike is 2060ce and spot price at expiry is 2000? Won’t it net-off if my one call is ITM and other is OTM?
2- What is the margin requirement if one Call is ITM and other is OTM?
3 – Will my margin requirement still double if my both the calls are OTM on Wednesday or Thursday?
4 – Will my margin requirement still double if my both the calls are ITM on Wednesday or Thursday?