Call Premium

#1
Hello All,

This is my first post in this forum.

My query is, do i get the premium back if i buy a call option and exercise it when i am in profit.

Let me know if i am missing some thing.

Sedegg
 

sumeetsj

Well-Known Member
#2
Hello All,

This is my first post in this forum.

My query is, do i get the premium back if i buy a call option and exercise it when i am in profit.

Let me know if i am missing some thing.

Sedegg


Yes you do get your premium back..
Exercising is just selling,
all options are cash settled in Indian markets
 
#3

Yes you do get your premium back..
Exercising is just selling,
all options are cash settled in Indian markets
I believe the query was about getting the absolute premuim back, which is not the case. The cost of an option i.e. premuim is a sunk cost and the same is to subtracted from any return generated by exercising the option to get "net profit or loss".

Regards,
BJ
 

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