Query Corner
SEBI recently announced plans to launch options in commodities. Please explain how the settlement will take place on contract expiry.Nilanjan Chakrabarti, Salt Lake, KolkataLet us first understand how an option works. There are two parties to an option contract — a buyer and a seller. The buyer, by paying the premium, buys the right to exercise his option on the seller. The seller, on the other h...
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