Upgrad LLM

call option in nse

Ex - Scientist `F`& Head (SPPD)

A small query on exercise of call options in Stck exchange :

Suppose a buyer of call option for a particular company purchase the call with certain premium at certain strike price. Now till the end of expiry period, he does not square off the deal. And if at the end of expiry,  the market price of that company is higher than the strike price of buyer.

Will he get the difference between strike price and market price as profit or not .

Or he may not get any thing as he has not squared off the call option/deal.

Kindly answer at the earliest

 
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Management Trainee

Hi

I don't think he can get any profit after the expiry of the period to excercise the option.Since he did not excercise the option on time, he will not be eligble to get profit after the expiry

Please confirm the answer.

 

Regards

Mukti Thaker

 
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Ex - Scientist `F`& Head (SPPD)

Thanks for giving your presumptive answer. I also can imagine that way. I thought some body who has read `Options` in their curricula can give a definite answer. 

 
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