I have a query please help
If I sell a call of HDFC Bank for say 900 strike price quantity 500 and premium 20 rs. for 25 June 2020 expiry.
Let’s say date is 5 June 2020.
I receive the premium of rs 10000
1.What if I square off my position on 20th June with a premium at 15 rs? Can I do that? What will be my liability after that as per contract? If stock price crosses my strike price, do I have to still buy or sell shares or pay to the buyer on expiry date?