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Questions on Exercising Stock Options

by Jorge
(miami fla)




money be exericre - if go exerice like xxz $40. have right to buy so be $40 share would be $ 4000 dollar total have paid be from my acount .tell go for for example xxz $40 put option gives me the option holder the right to sell 100 share of xxz at the exerice price of $40 a share I wnat know does it have be in money and dont have paid no money for exerice price of $40 a share can sell 100 share .. hope you help me want know be in money be exercise out money can not be exercise wait your answers soon Jorge




Comments for
Questions on Exercising Stock Options

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Sep 25, 2010
Stocks Simplified Writes
by: Shaun


“Does an option have to be in the money to exercise it”

No, you can exercise it whenever. If you want to could exercise your right to buy a stock at $40 when the stock is at $38. But you would lose money by doing that. It is simply only profitable when a stock option is in the money.

“Do You Have to Pay Anything To Exercise A Stock Option”

Standard commission rates apply. If your broker charges you $8 per transaction then it would cost $4,008 to buy the shares. If you buy and sell them it would cost you $4,016.

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