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Microcap & Penny Stocks : Trading 101

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To: Ga Bard who wrote ()5/6/1998 7:11:00 PM
From: Tony  Read Replies (1) of 406
 
This is a question about options:

1.) Option contracts are for 100 shares... so if an option is quoted at 2, is the price of the contract $2, or $200?

2.) If I buy, for example, June 30 calls, and the stock goes to 35 prior to the strike date, can I short the stock at 35 and use the short proceeds to cover? If not, can I exercise the options and sell on the same day, using those funds to cover?

3.) Last, can I exercise a call prior to the strike date?

-Tony
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