Book Closure during Option Expiry Date

[sridhga]

Hi,

What will happen to Put and call option holders who want to excercise the options on the expiry date if the expiry date overlaps with book closure. Also what is the impact on option writers?

 

[SavantGarde]

Hi,

What will happen to Put and call option holders who want to excercise the options on the expiry date if the expiry date overlaps with book closure. Also what is the impact on option writers?

Exercise & Assignments of options is cash settled....therefore book closure date doesn't interfere with the Options segment.

SG

 

[sridhga]

Okay,

I will take it like this. The price of UL is taken as the price last traded price whatever is available even if the UL is not traded on the strike date.


Now extending the question further, are futures whose strike date falls during book closure traded during the period of that book closure?

If yes, would that price be taken as reference price for the options?

 

[sridhga]

Interestingly, SBI and Infosys book closure overlaps with May 31st which is the excercise date of the options.

 

[SavantGarde]

Okay,

I will take it like this. The price of UL is taken as the price last traded price whatever is available even if the UL is not traded on the strike date.


Now extending the question further, are futures whose strike date falls during book closure traded during the period of that book closure?

If yes, would that price be taken as reference price for the options?

Scrips are traded even during Book closure... one can take delivery as well..... but actual delivery will be reflected after book closure date in the demat account....and till the date of book closure a contract will be generated everyday...!!!

Reference price is the closing price on that day....!!!

Have no idea why are you breaking your head over Book closure...it does not affect the price of option or futures.... and moreover even the scrip is traded normally like any other day....!!!

SG