Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Settlement of the Index Options Contract
In the index options contract, the premium to be paid or to be received is calculated for each CM after netting the positions at the end of each day. The CMs who have to pay the premium pay them to NSCCL and this is adjusted with those who have to receive the premium. This is known as daily premium settlement, CMs are responsible for collecting and settling the premium amounts from the TMs and their clients. The premium to be paid or received is directly debited or credited respectively to the CM's clearing bank account.
On the expiry day of the options contract, NSCCL will determine the outstanding in-the-money contracts based on the final settlement price, and the resulting profit or loss will be settled in cash. The final settlement price is the closing value of the underlying index price on the expiration day of the contract. The final settlement profit or loss will be the difference between the stock price and the final settlement price of the relevant index option contract. Final settlement profit or loss amount is credited or debited to the relevant CM's clearing bank account on the day following the expiry day.
Settlement of Options Contracts on Individual Securities
The premium to be paid or received is netted across all option contracts on individual securities at the client level to determine the net premium payable or receivable at the end of each day. The settlement procedure is similar to that of the index option contracts. Interim exercise settlement is effected for exercised option positions at in-the-money strike prices, at the close of trading hours on the exercise day. The interim exercise settlement price is the clearing price of the underlying security on the exercise day. The settlement value is the difference between the strike price and the exercise settlement price of the option contract. The exercise settlement value is debited or credited to the CM's clearing bank account on the third day of the exercise day.
Negotiating and Closing Transaction: A diverse set of skills and very thorough preparation is required for negotiating and closing a divestiture transaction. Facts and informat
Q. How to Select the pattern of the investment? When the funds have been procured than a decision about the investment pattern is to be taken. The selection of the investment p
Example of Company Objectives Divide from the problem of which goal a company ought to pursue are the questions of which goals companies claim to pursue and which goals they a
Why would an analyst use the Modified Du Pont system to calculate ROE when ROE may be calculated more simply? Explain. In fact, an analyst would not use the Modified Du Pont equ
a) Write short note - 1) P V Ratio 2) Margin of Safety 3) Material Variances 4) Absorption Costing b) Describe the meaning of the term 'variance an
FEATURES OF A BUDGET a. It is prepared for a specific period. b. It is expressed in quantity or money or both. c. It is a statement describing ob
How and why does working capital influence the incremental cash flow estimation for a planned large capital budgeting project? Explain. Many large projects need additional worki
Would exchange rate changes all time increase the risk of foreign investment? Discuss the condition within which exchange rate changes may actually decrease the risk of foreign inv
how are indian customers visiting shoppers stop
What is an LBO? What are the risks for the equity investors and what are the potential rewards? A leveraged buyout is a buy of a publicly owned corporation by a small group of
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd