If i write call option of nifty strike price 14000, nifty touched 14000 and closed below strike price on
1). regular day 2).expiry day.
Do the option writer have to pay to option buyers on option exercising?.
Thanking you.
bro… there are lots of possibilities here with regular day… will be better if you use pay off graph provided by likes of sensibull or opstra that will help you understand scenario better… on expiry day logic is simple, if nifty closes below your strike price option will expire worthless and you will get to keep all the premium received…