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Old 19th May 2010, 09:23 PM
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Default Exercising Options



I'm pretty confused related to exercising of options.

I bought Suzlon 60 put option, so as was the case today it fell to 58 at one point, but later on bounced back to close at 60, so if I had exercised my option when it was at 58, would I had made money or since it closed at 60 I would have gained nothing?

Please help.
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Old 19th May 2010, 09:38 PM
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You would have got nothing (theoretically Rs 0.10).

Options exercise settlement is done only after the market closes.

The settlement price of a stock option is the closing price of the underlying stock.
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Old 19th May 2010, 09:41 PM
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Thanks, Alchemist for the lightening quick reply , but this seems to be a very painful part of exercising options. Thanks for clearing my doubt.
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