Key Aspects of Options Trading: Benefits, Margins, and Execution Rights

Can an option buyer exercise their right any time during the contract's duration?

No, the option buyer is only able to exercise their right upon the contract's expiry.

For instance, Ms. Mehta acquires a put option for Bajaj Auto with a ₹3,000 strike price, set to expire in three months. Even if Bajaj Auto shares drop to ₹2,900 within the first month, Ms. Mehta cannot exercise her selling right at the strike price until the pre-specified expiry date.

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