Option Price at the end of expiry

Dear Sir,

Please let us know what happen option price at the end of expiry?

for example if we try to trade a long straddle with INFY option strike price at 2450 on 29/11/12 CE was opened @55.50 and PE was opened @45.70.

Yesterday's closing prices are CE @7.15 and PE @144.85 Total (7.15+144.85=152.00). This means difference of buying price (CE 55.50 + PE 45.70 = 101.20) and present price gain of +50.80.

But today i am seeing PE2450 has no transactions. if no buyers interested to buy the PE at present rate what happens at the end of expiry?

Thanks in advance.

Aravind

I had sold one lot of Nifty 6000 CE December series @ 18 few days back. Is it mandatory to square off the position before the expiry i.e. tomorrow or leave it to expire.

dear ranj_2k
it is not mandatory to square off the position before expiry in case of out of the money...
in case of in the money options if it is squared off automatically the brokerage is calculated with underlying price not with option price...
stt is 0.125% of underlying in case of options it is 0.017% of option value so u ll lose money
so it is advisable to square off in case of in the money options just before expiry
...
happy trading

raj_dr