Call and Puts

[cris6]

Sorry for previous thread...

Guys, could you clarify couple of things for me about calls and puts.

1. In which cases it’s beneficial to cash in on option before actual exercise date?

2. If I am to wait until exercise date then do I actually have to buy/sell stock or will I get difference between strike price and actual share price that is quoted on an exercise date?

Thanks

 

[beekeeper]

Sorry for previous thread...

Guys, could you clarify couple of things for me about calls and puts.

1. In which cases it’s beneficial to cash in on option before actual exercise date?

2. If I am to wait until exercise date then do I actually have to buy/sell stock or will I get difference between strike price and actual share price that is quoted on an exercise date?

Thanks

With standard options its not possible to exercise before expiry and at expiry, assuming you are "in the money" you will have to buy and sel the shares to lock in your profit.