Why was the settlement price 0 for the option position, although the Last Traded Price (LTP) is not 0?

Why was the settlement price 0 for the option position, although the Last Traded Price (LTP) is not 0?

The settlement price, used to determine the profit or loss on an option contract upon expiry, differs from the Last Traded Price (LTP), which indicates the most recent price at which the option was traded. When the strike price is out-of-the-money (OTM), meaning it does not correspond with the underlying asset's current price, the settlement price will be zero, irrespective of the LTP. 


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