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is there any shortcut to remember when to excericse the price? in some cases we excercise when the excercise price is more than the future price? sometimes the oppsoite please help me
I think it’s easier to think about if you think about each situation on its own merits. Also just because it is profitable to exercise an option doesn’t mean someone will exercise said option. A lot will depend on other factors. For example, do they think it will be even more profitable to hold onto the option and exercise it in the future. Factors such as taxation, time value of money and need for funds may also enter into the equation.
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