If I sell a put of bank nifty of 36000 at price of 307 and if on day of expiry it become ITM then physical delivery is possible like shares. If possible then we get physical delivery of what ?
hi there, what i know is index option are settlement through cash only and stock option are settled through physically delivery
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Index options are cash settled… So if the short put option becomes ITM and it the price goes below the break-even price then you will be making loss.