New Rule of Options: 2011

11/01/2011 00:15

National Stock Exchange has released a circular on 22 December, 2010 (Circular no. 137) which states that “all the options contracts in F&O Segment will have European style exercise w.e.f. 31 December, 2010. Hence, the exercise market shall not be available w.e.f. 31 December, 2010.”

Implication: From 31 December, 2010, the only way to close the Stock Option Contract by Buyer will be to wait for expiry date.