Re: Buying call options
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-To simplify say you have call prem. of $5 per share & strike price of $50.
-Your stock is sitting @ $45. At prices of $50 and above you will exercise the call. (In the money)
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Wouldn't you want to exercise at $5<u>5</u> and above, because of the $5 cost of the option?
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You would still exercise it because you would rather break even then lose the cost of the option.
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