Comment on Physical delivery of stock F&O & their risksĀ 

Kanishka kumar commented on 01 May 2022, 06:03 PM

The basic purpose of an option is hedging not trading. As per the very basic definition of option it gives you a right but not an obligation to buy something at a pre determined price . Obviously you have to buy now .
In the US and EU too stock options are physically settled.
The DNE is the correct way to go because it ends the ‘obligation’. Stocks should be physically settled because again that is the very definition of an option contract.

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