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1 December, 05:53

Which of the following statements regarding the exercise of options contracts are TRUE? The exercise of equity options settles the next business day. The exercise of equity options settles in 2 business days. The exercise of index options settles next business day. The exercise of index options settles in 2 business days.

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  1. 1 December, 08:25
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    The exercise of equity options settles in 2 business days.

    The exercise of index options settles next business day.

    Explanation:

    In accordance with the market practices of trading and exchange of options and equity are settled as follows:

    Equity options has to settle in 2 business days, and that the index options settle the very next business day.

    Business days do not include Saturdays and Sundays as are not the open days for exchange of options in the market through stock exchanges.

    True Statement are:

    Statement 2 and Statement 3
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