what is this adjustment that happens after market closes on expiry day?

"After-market close on expiry day, options positions are settled based on the closing price of the underlying stock, determining profits or losses for traders."
On expiry day, the prices of options and futures contracts are adjusted to reflect their settlement value, which is determined based on the underlying asset's price at a specific time, usually the market close. This adjustment ensures that all gains and losses are accurately accounted for, aligning the contracts' final settlement prices with the actual market prices. This process is crucial for clearing and settling all outstanding positions, ensuring a fair and orderly market.

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