Options trading - beginner question

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  #1  
Old 12th March 2006, 09:54 PM
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Default Options trading - beginner question



Hi,
I have been trading in futures for a while now and want to get into options trading. I do have one question related to this (I plan to trade in stock options and not index options)

How do I exercise options? I have been reading that options can be exercised before expiry, but haven't found anything on how to do it?

Nitin

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  #2  
Old 13th March 2006, 07:54 AM
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Default Re: Options trading - beginner question

All stock options traded on the NSE are American options and can be exercised before expiry date. However the Index options traded on the NSE are European in nature and can only be exercised on the expiry date.

In order to exercise an option you will have to contact your broker.

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  #3  
Old 14th March 2006, 09:23 AM
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Default Re: Options trading - beginner question

So if I excersize my option through my broker will it be cash settled or will I have to pay up and take actual delivery?

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  #4  
Old 14th March 2006, 09:45 AM
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Default Re: Options trading - beginner question

All options are cash settled in India

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