Hi
If we have stock of reliance 500 and we sold call of reliance at strike price of 1500. and reliance closed at Rs. 1515 at end of expiry.
so now my call is ITM, and If do not square off reliance call of strike price 1500 till expiry which i sold at beginning of month. (do not buy back which i sold call).
Now I wanted to know it is clearing house is settled but from below options, how they settled.
i) it is settled like my reliance stock of 500 shares will be debited from demat and I got amount of 1500*500 in my ledger.
ii) or it is settled like clearing house will buy back reliance 1500 strike price call at a cost of Rs. 15.
Thanks in advance !!!!!!!!!!!
If we have stock of reliance 500 and we sold call of reliance at strike price of 1500. and reliance closed at Rs. 1515 at end of expiry.
so now my call is ITM, and If do not square off reliance call of strike price 1500 till expiry which i sold at beginning of month. (do not buy back which i sold call).
Now I wanted to know it is clearing house is settled but from below options, how they settled.
i) it is settled like my reliance stock of 500 shares will be debited from demat and I got amount of 1500*500 in my ledger.
ii) or it is settled like clearing house will buy back reliance 1500 strike price call at a cost of Rs. 15.
Thanks in advance !!!!!!!!!!!
