What happens to the excess money, when you have options that are deep in the money and you want to exercise? For an example let’s say that the option contract is worth $10,000 and the exercise price is $3,000. If you exercise do you pay the $3,000 and lose the $7,000 excess?
In: Other
You forfeit the time value of the option.
No more time? No more money. Just the value of the stock.
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