Comment on Basics on Options Shorting/Writing
Dear Nitin,
I have following questions which are really frustrating me. Please help.
1) what is square off and exercise of the option?
2) What is the meaning of assignment?
3) What is cash settlement and stock settlement?
4) Suppose I short 1 Reliance call option 990CE Lot size 250 spot price 970 @ expiry it is ITM and the buyer want a stock settlement then how much it costs to me for a stock settlement.? How this stock settlement works?
5) For Nifty is it a cash settlement or stock settlement?
Please help me to clarify this doubts.