Index options in the money

[ShubhS9]

@Bhargav_Khanpara

If nifty expired 16050 and we had 16000 call, and we dont sqaure off, price of 16000 call considered as 50 rs? And in contract note we get 50 rs as sell price and for 1 lot 50 into 50 = 2500 rs as credit we receive?

Yes, ITM index options are settled at intrinsic value. If Nifty is at 16050 on expiry, the 16000 Call option will expire with intrinsic value of 50, this will be credited to your account.

Also, for Long ITM Options that are left to expire, the exchange charges STT at 0.125% on the intrinsic value. You can learn more about this here: Starting Sep 1st, finally no more STT trap on exercised options :)