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What happens to the premium of a call option as the option becomes more "in the...

What happens to the premium of a call option as the option becomes more "in the money"?

1.

The premium increases
2.

The premium decreases
3.

The premium does not change
4.

It depends on the strike price

If you buy a call can you close your position by selling a call?

1.

No
2.

Yes
3.

Yes- but always at a loss
4.

It depends on the strike price
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Answer #1

rate positively .

Ans 1 correct answer is option -
1) The premium increases
If the call become in the money and and option become more in the money call premium will increase
Ans 2 correct answer is option -
2) yes
Call option can be closed by selling the call option.
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