Gday, i was wondering if someone could help me out. I have just read a book on options and Im extremely interested Its just one point is confusing me. For example, mzio are selling at .011, so if a buy the right to 30000 shares Thats a premium of $330. The striking price is .025. So if i pay the premium of 330 then immediately exercise the option and sell at .038 (mzi current price) i receive 840. Minus the 330 premium and 330 to exercise the option plus say 60 brokerage i will be left with 120 profit? Is this correct? Or could someone please point out where i went wrong? Thanks a million. Sending me crazy.
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