When a profit is made on call option (Underlying greater than exercise price), the person doesn't exactly receive any cash right? Its just a right to purchase at a lower price
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Profit on call option
9y ago#1They will receive cash. The reason is that if they are using the options to hedge then if they exercise them then they will buy at the exercise price and then immediately sell at the actual price - the net amount is the cash they will receive.
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