I was wondering with IB Brokers what happens when a Vertical Credit spread expires ITM?
Let's say I do a Bear Call spread on BHP
Short $40 and Long $45. At expiry the underlying is $42.
I would be assigned on the $40 call the next day and as I understand have until 10:10am to deliver?
Would IB brokers just debit the $2000 difference or would I need $42,000 in cash to buy the underlying?
If at expiry the underlying is $46. The long $45 should cover the Short $40. Would IB Brokers deduct the $5000 from my account or would I again need the $45000 cash to physically excercise the $45 long call and deliver the underlying stock?