Why short price is higher in the options ?
Can someone please elaborate on this topic
How options get settled if the we bought nifty 12500 CE at 65 and it is trading at 150 on expiry and nifty is at 14000 at expiry it would be better to sell the option or to keep it would be more fruitful.
Upon expiry, OTM Options will expire worthless, while ITM Options will be settled at the intrinsic value and any profit or loss will be credited to / debited from your account.
Taking your above example, if Nifty closes at 14000 on expiry, Nifty 12500 CE will have intrinsic value of 1500. So this is the price at which the Option will be settled at.
And as you bought this for Rs. 65 and will be settled at Rs. 1500, your P&L will be Rs. 1435 * Lot Size.
Also, for Long ITM Options which you leave to expire, exchange charges STT ay 0.125% on the intrinsic value.