New to options trading, and I am trying to get my head around this call option for medibank under code MPLIH8.
It has an exercise price of $2.20 with a price limit of $0.035. The share price is currently $2.50.
Does this mean that the seller of option will sell it at the previous price of $0.035, or will the price most likely change to reflect the current market price on monday open?
I'm at a loss as to why someone would want to sell options when they are in the money by a far bit on open monday morning. I mean I could just buy them all at that price and then exercise immediately..... is there something I'm missing?
