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Assumption of ObligationSettlement of Individual Options

Settlement of Individual Options

  • Individual Options transactions can be settled either by an exercise of Option or by offsetting trades (offsetting purchases or sales). With regards to Individual Options, the right can only be exercised on The Last Trading Day (European-type option). The settlement of exercised Option and corresponding short position shall be carried out by generating purchase or sale of the underlying securities.

    ※ With regards to Options transactions, while payment and receipt of the premium shall take place on the day after the trading, unlike Futures transactions, payment and receipt of Mark-To-Market Margins do not take place.
  • In the case where offsetting purchases or sales are not executed by The Last Trading Day, all positions of ITM (In-the-Money) Options are automatically exercised unless the right is explicitly abandoned. On the other hand, all positions of OTM (Out-of-the Money) Options dissolve unless the right is explicitly exercised.