Options Query
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Dear Team,
As per my understanding, if the Stock Option is In the Money, it needs to be physically settled. However, if one has adopted an Options Strategy, let's say Bull Call Spread, where one Call has been bought and another Call has been sold, in that case, how does the settlement take place? If one of the Call is ITM and another is OTM, only ITM call will have to be settled? Can you recommend a good material / video where these details of how the options / futures legs will be settled are provided?
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Only ITM options are settled, and not the OTM options
