Currency Options

Trading
1

I bought 10 lots of USDINR strike price of 70 Rs at a premium of 0.5,
So my total premium would be 500 Rs + Taxes.

Now consider expiry is tomorrow and LTP for USDINR Nov 70 is 0.8,
which means, if i sell now i’ll get 800 Rs - taxes.

What happens if i let the options expire and the expired prices is 1 rs ??

Thanks in advance.

Regards
Prem

2

You get back Rs 1000. So you make a gross profit of Rs 500.

3

Are there any charges incurred if OTM USDINR options are allowed to expire (position is not actively closed). Are there any charges if ITM USDINR options are allowed to expire ( long or short). I understand that the final settlement price will determine credit/debit and profit/loss etc but are there any charges if ITM options are not actively closed but just allowed to expire.

4

Since there is no STT in currency trading, there are no extra charges if you let ITM options expire