So we know that if we sell puts and it goes deep itm and is exercised, u need to take delivery.
Is it okay to buy a future lot at tht time rather than buying in cash?
if your put is in ITM and you buy future then I guess at expiry the position will be zero as in exercising your put option, you have to give delivery of shares and when you buy future, you will take delivery of that stock. So overall net position will be zero and it will result in loss of (Put Strike Price - Future Buy Price)*Lot Size.
Short Put and Long Futures have same obligation, ie. to take delivery of underlying shares. To net off the Short Put obligation, you need to take Short Futures position. Please check out the below screenshot on net-off scenarios;
You can learn more about physical settlement here.
No. You have to Buy full lot of underlying .
Put option is a contract between you and a option buyer (which gives him right to sell his stocks to you at a given strike price, and you are obliged to buy).
The other party will have shares which will be settled and sold to you by the exchange. So exchange cannot give you future lot instead. Hope this answers
How sir it will be take delivery of the underlying shares right sir…?
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Right. Typo, corrected 