Physical Delivery in F&O
Which of my open position in stock derivatives will be physically settled? How is settlement obligation computed?
As mandated by exchange, the following positions in respect of contracts identified by Exchange shall be physically settled: All open futures positions after close of trading on expiry day All in-the-money Options contracts which are exercised and assigned The settlement obligations shall be computed as under : a. Unexpired Futures Long futures shall result into a buy (security receivable) positions Short futures shall result into a sell (security deliverable) positions b. In-the-money call options Long call exercised shall result into a buy (security receivable) positions Short call assigned shall result into a sell (security deliverable) positions c. In-the-money put options Long put exercised shall result into a sell (security deliverable) positions Short put assigned shall result into a buy (security receivable) positions The quantity to be delivered/ received shall be equivalent to the market lot * number of contracts which result into physical settlement.