What happens when I short a call option on expiry date and the contract expires with zero value.
you get to keep the premium received.
The option;s intrinsic value, and time value turns zero, hence the premium goes to zero. This means you get to keep the entire premium amount.
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ur the winner
You can keep the entire premium value as profit.
The margin blocked while you shorted, will be credited back in full to your trading account balance (after closing hours on expiry date, i.e. after the settlement takes place)
What about the margin amount? will I be in profit or loss?
The margin amount will be returned to you, as you made a profit. Margin is like a deposit to secure against loss…