Currency option on expiry

What happens to currency option on expiry?

Does OTM expire worthless as share market index options or settled with currency price?

Currency F&O are cash-settled just like Index F&O. OTM Option will expire worthless, while ITM Option will be settled at intrinsic value according to the RBI Reference Rate on the expiry date. This is available on the NSE, BSE and FBIL websites.


Okay thank you for your reply

So OTM options of currency also expire worthless on expiry same as nifty/banknifty index options, correct?

And what about Comodity options?


Same for Commodity options as well. OTM Options will expire worthless, and ITM Options are devolved into Futures upon expiry. Here’s how this works.

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Since it seems that you are new to currency FnO, just wanted to tell you that the expiry dates for these are computed differently than equity FnO.

You can read up more on varsity or the contract itself.

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Okay sure