InvestorQ : How are options settled; by premium settlement or exercise settlement?
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Arya Nanda made post

How are options settled; by premium settlement or exercise settlement?

Answer
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Jignesh Gupta answered.
2 years ago


The table below captures the gist of what the settlements are all about. As you will see from the table, the settlement predominantly happens (over 90%) in the form of premium settlement only. Even in case of futures, it is predominantly MTM settlement.

Month/Year

Index / Stock Futures

Index / Stock Options

Total

MTM

Final

Premium

Exercise

Settlement

Settlement

Settlement

Settlement

Apr-18

9426.5

160.96

1453.52

144.61

11185.59

May-18

12422.3

373.97

1275.35

208.78

14280.4

Jun-18

11243.01

299.4

1645.06

394.04

13581.51

Jul-18

12392.17

161.07

1323.05

124.62

14000.91

Aug-18

9001.41

108.61

1187.6

133.41

10431.03

Sep-18

16643.84

347.61

1857.61

264.74

19113.8

Oct-18

19279.05

359.46

2456.09

272.48

22367.08