I am new to options trading. I emailed belldirect about exercising options and here is what they said.
"When you manually exercise a call you will need to have the funds in the account at the time. If you have an in-the-money call option which is automatically exercised at expiry and do not have sufficient funds in the account we will contact you immediately via email and you will need to transfer in sufficient funds the following day for settlement.
If a put option is exercised and you do not hold the shares at the time of exercise we will automatically purchase the shares at the prevailing market price."
So it does not matter if i have a call/put i need to be able to buy the underlying security to exercise the option?
