The settlement price is derived from the weighted average price of all trades done during the last 30 minutes on the underlying instrument on the cash market. The LTP cannot be zero. The settlement price will be zero if the option's strike price is Out-of-The-Money (OTM), regardless of the LTP being 0.50 or 0.1.
Related articles
- Why does the Last traded price(LTP) for F&O contracts change in the Kite position page before the market opens?
- Why is the LTP of stocks not visible or zero in the marketwatch on Kite?
- Why are option orders rejected, stating that limit orders that are far away from the LTP are restricted?
- Why does the Last Traded Price (LTP) not match the bids and offers in the market depth?
- What is Zerodha's policy on the physical settlement of equity derivatives on expiry?
