I was having this query on options excercising.
If i sell the option contract of SBI at 300 strike and premium of 5 and spot of 290
For instance let us assume that on the expiry day the SBI closing is at 303.
In this case even if the contract is In The Money. It has not reached the break even of 300+5.
So the option buyer wont make profit anyhow. In such case will the option be excercised ?
Second query : I as a option writer will make any loss ?.
If yes how much should be my lose ?