If a stock price does not rise or fall by the amount of the option premium, the option will not be exercised.

Name: If a stock price does not rise or fall by the amount of the option premium, the option will not be exercised.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Options can be exercised for reasons other than immediate profit, such as hedging or strategic exits, regardless of the stock price movement relative to the option premium.

If a Stock Price Does Not Rise or Fall by the Amount