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Sunday, 01/22/2012 1:20:55 AM

Sunday, January 22, 2012 1:20:55 AM

Post# of 364350
Question about exercising an option.

If you purchase an option (call) that is already in the money, can you buy it, immediately exercise it at the strike price, and then sell the stock right away?

If a stock was at 10.00 and you bought a call contact at .20 with a strike price of 8.00...how would it play out if you exercised it? What would you have to pay for the stock? If you bought 10 contracts would you have to exercise them all?

Any help from the great minds here would be appreciated..

Thanks

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