From my understanding if the underlying asset is compulsory delivery, and if I have off-setting contracts, eg. Long Put and long futures I would not have to purchase/sell the stock.
Now my confusion is options premium vs contract value, as I gather STT in futures will be same, regardless when i sell it. My I correct?
Further reading the links you had sent and along with the assumption that off-setting positions will result in non-excersise automatically.
Taking the above example, and my long Put being ITM, will the SST be;
.05% of premium, in this example rs. 49 settlement price
.125% of 150, 150 being the strike price, again i am assuming contract value means strike price.
This has been answered on the thread, it is not so difficult to find. Anyhow
Contract value is (strike+ premium) * lot size, if one closes it STT will be on premium only, ie premium*.05%, if you let it expire ITM then stt= contract value* .125%. STT is only on sell side.