For the purchaser of a call option the option will normally be exercised for profit if the market price of the underlying futures contract or security climbs above the sum of the strike price, option premium, taxes and transactions costs.

Question

Quizplus · Accepted Answer

The profit from exercising a call option occurs when the market price of the underlying asset exceeds the total cost of executing the option, which includes the strike price, the option premium, taxes, and transaction costs.

For the Purchaser of a Call Option the Option Will