narayan78 said:
I understood this, please correct me if i am wrong.
so we can sell a call option at the time of expiry by excersing and it will be traded at the closing price of the(exipiry) day.!
and we can square off an option at cmp at any day before expiry,(current market price)!
so we can sell a call option at the time of expiry by excersing and it will be traded at the closing price of the(exipiry) day.!
and we can square off an option at cmp at any day before expiry,(current market price)!
I you are talking about European Option, you are absolutly correct. Just a little addition: you can even square off your position at the expiry day at cmp.
On expiry day either you can square off (at cmp)or excercise (closing price).