Q81: - Is there any tolerance limit between strike price and actual price, for doing an exercise of option say Nifty 27 Aug 2009 CE 4000...
Say i want to exercise above option"Nifty 27 Aug 2009 CE 4000", on 27 Aug 2009 ... but Nifty index is reading 3999! ... So can i do exercise of this option or I have no RIGHT because it is still 1 point behind 4000 strike price?
So is there any tolerance zone around the strike price where the option becomes exercisable? ... Or is it an absolute Zero tolerance contract?
regards,
priyanvada
Say i want to exercise above option"Nifty 27 Aug 2009 CE 4000", on 27 Aug 2009 ... but Nifty index is reading 3999! ... So can i do exercise of this option or I have no RIGHT because it is still 1 point behind 4000 strike price?
So is there any tolerance zone around the strike price where the option becomes exercisable? ... Or is it an absolute Zero tolerance contract?
regards,
priyanvada