What if one don’t exercise I mean don’t square off Commodities out of money options? Please explain in brief.
All Out the Money(OTM) options expire worthlessly.
Is all MCX Commodities out of money contracts expire worthlessly? And what about in the money contracts?
Yes. For ITM (In The Money) contracts there is concept of devolvement.
Further if you are new to this concept you can check/read on Varsity to get a better understanding of MCX option contracts.
Thanks. Can you explain about stock in the money and out of money contracts treatment at the time of expiry?
In stocks OTM(Out Of the Money) contracts expires worthless. All index F&O contracts are cash-settled.
ITM(In the Money) contracts there is a concept of physical delivery post expiry.
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