Hi everyone, I'm a bit new to options trading (2 months).
I want to ask about a scenario where a stock price is 100 and my short put is 83. Will the option still be exercised at expiry even if the price of purchasing the option (from another buyer) costs more than the profit you gain from selling at that option strike price?
For example, if the premium of that short is 1.9 which means the contract costs 190, but since the profit you gain from selling at that strike price is 170 it is kinda not profitable. So I'm wondering if it will get exercised in this scenario.