newbie question

Hi all,

I have a basic question regarding option exercising.
If I bought nifty 3200 call @ 30 when nifty is at 2850 levels, and wait till the closing date (assume 27-nov-08) on which nifty has closed at exactly 3200 level, with out squaring off do I get to make profit or loss ?
(assume that I haven't got any opportunity to square off before/on the closing day)

I'm very confused with this scenario and it will be very helpful if some one can answer this.

Thanks,
termite

If you have 3200 CALL and paid 30 Rs for this. Then your breakeven price is 3200+30 = 3230. That means, that NIFTY has to be above 3230 on expiry to give u some profit.
If on the day of expiry, NIFTY closes at 3200, you are still in loss of 30 Rs.
If nifty closes at 3210, then your options is In The Money by 10Rs. so you will get back 10Rs in your account.. but still you are in loss ..because you paid 30 and got back only 10.
If Nifty closes below 3200. then option expires worthless.. i.e. it has no value.

That is the worst case scenario where u wait till last day.. The scenario will be different before expiry and option will have little more value.

Happy Trading.

Thanks AW10. It's crystal clear now