Hi! Let's say I buy a call option for company XYZ, currently trading at 10$, with a strike price of 15$, and a premium of 0,01x100=1$, expiring in a year, and hurra! six months later the market price of the stock reaches 20$ and I want to sell my position and realize the profits. Do I have to actually buy the 100 stocks of XYZ at the strike price of 15$ and then actually sell them (or keep them if I want?) at the market price for 20$, or is that transaction automatic and I just collect the profit without having to buy and sell the underlying asset by myself? I understand the theory behind call options but I'm still not sure how the transaction is carried out in practice. Thanks for your help!
Submitted November 13, 2021 at 01:27AM by Charbel33 https://ift.tt/3kzI2Ez
