What does expiration date cashflows mean?
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Will you please elaborate I didn’t understand your question
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It means what will be the cashflow if you do the following statergy
in scenario 1 we buy 1 call so outflow is ₹ 9 at strike price of ₹60 at expiry the market price is 50 so the call lapses and we have a net outflow of ₹9 i.e loss
It means the net inflow/ outflow when the options are settled (expiry date).
Pay off at maturity?
yes you are correct
Thnx