I have a basic question on option exercise.
Now we don’t have any STT trap, however I want understand how the charges are calculated.
Ex… exchange transaction charges, sebi turn over etc…
My understanding is below. Pls correct me if it is wrong.
Spot BNF 21000
Buy 20500 PE @ 200 premium
Expiry day BNF closes at 20400 In this case payout would be
Intrinsic value = 600 * 20 = 12000
Less premium paid= 200*20 = 4000
Net payoff = 12000-4000 = 8000
Brokerage = 40
STT : (600 * 20)*.125% = 15
Exchange charge = ??
Sebi turnover charge ??
Not sure on which value Exchange transaction and sebi turnover charge is calculated because the zerodha charges page tells transaction charge is .05℅ on premium, however here we are exceeding option.
This question may b silly but I wish to understand this calculations…