Let’s say I buy an ITM on expiry day and let it expire, Will I get price difference of spot and strike or the price defined as ‘close’ by exchange?
For example on 19-Mar-2020 I bought BNF 20100PE and let it expire. The difference between the strike and spot was ₹16 which I was paid, but when I checked on NSE website, the closing price of this option is ₹34. Who gets the balance?
The closing price for the contract is calculated based on the last half an hour weighted average price on NSE. It does not have anything to do with the expiry settlement.
Hello Mahefooz:
The below site will give you more information on settlement price.
https://www1.nseindia.com/products/content/derivatives/equities/settlement_price.htm
For Options:
a. Index - Closing price of the relevant underlying index in the Capital Market segment of NSE, on the last trading day of the options contract.
b. Individual securities - Closing price of the relevant underlying security in the Capital Market segment across exchanges, on the last trading day of the options contract.
For Futures:
Daily Settlement: Index or Global index - Closing price of the futures contracts on Index on the trading day. (closing price for a futures contract shall be calculated on the basis of the last half an hour weighted average price on NSE of such contract)
Final Settlement:
Index - Closing price of the relevant underlying index in the Capital Market segment of NSE, on the last trading day of the futures contract.