Comment on STT Trap - Options Expiry - NSE BSE MCX-SX

Bhawani commented on 02 Apr 2014, 01:09 PM

Dear Nitin,
I need some calrification regrading associted charges with option exercise.

Suppose i buy a 2700 CE 1 lot with premium of Rs 4060 (Nifty is around 6700).
Assuming i pay brokerage @ Rs 15 per lot, My net outflow for the transaction will be: 4060+ ((15/50)+0.052%*4060)*1.12 = 4062.70054
(0.052% of premium is for transaction charges, stamp duty, sebi tax. Correct me if wrong)

Now if i hold the contract till the last day and let it be exercised considering it to be ITM. What will be my net inflow on that day? (Assume nifty to be 6700 on that day). Please show the detail calculation for brokerage charges, transaction charges, stamp duty, etc.

My net profit/ loss will be? : inflow on exercise – outflow on buying the option = ?

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