If we buy deep ITM and let it go till expiry. Now if there is no liquidity or the BID/ASK price has a huge difference, then if we let it expire without manually exiting, how will Zerodha square it off?
eg. nifty if one buys 12000 PE when Nifty is at 10800. What will happen on expiry if there are no sellers of PE then?
Upon expiry exchange takes care of settlement of all ITM Options. There are no additional charges other than STT which will be charged at the rate of 0.125% of intrinsic value (how much in-the-money the option is).
Ok, even for deep ITM BUY side if there are no sellers?
Will the settlement happen based on the BIG ASK price or the intrinsic value and the money credited in the account?
About taxes: will the tax and other charges same like manually exiting?
Settlement will happen on intrinsic value and money will be credited to your account.
Other charges are the same other than STT which will be charged at the rate of 0.125% of intrinsic value (how much in-the-money the option is).
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