Simple question guys
There is a call option say nifty 10800 which is written by seller1 and bought by buyer1
After writing his option seller1 collected premium and went on tour. Now buyer1 bought this option but later sold to buyer2
Buyer2 was the last buyer and it is expiry day and the nifty closed by 10820 which is ITM .
Now people say square off square off but buyer2 could not find buyer3 to sell. Now this will be the same scenario with every option right? There has to be a final buyer with no facility to square off? What will he do? Should he click do not exercises? Or should he calculate STT and if profit is above STT deduction he has to exercise?
Someone please explain from last buyer perspective.