ok raine, ill just focus on the last statement as i think that is the one you are finding confusing. an option is defined as the right to buy. not the obligation. so if at expiry the option if the option is not exercised, then it will expire and hae no value. obviously tho if the option is in the money you would certainly want to exercise it. i hope this helps, let me know if you have any other questions or if this is not what you meant.
cheers
j
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