Usdinr settlement

I would like to know what happens if a USDINR option expires in the money?

Do I have to give/take delivery of USD?

What other risks are associated with not squaring off before expiry?

I think USDINR is also a cash settled contract. If the option expires ITM, you will be paid the intrinsic value.

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But the settlement will happen at the RBI reference rate and not the last 30mins VWAP as is the case with equities.


There is no risk of physical settlement for Currency F&O as these are cash settled. If the Option is ITM, it will be settled according to the RBI reference rate and the difference between your buy/sell price and the settlement price will be the P&L. OTM Options will expire worthless.

You can RBI Reference Rates on the FBIL and NSE website.

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