Reasons for alternative of buying a call at higher price

Reference no: EM131326059

Explain the advantages and disadvantages to a call buyer of closing out a position prior to expiration rather than holding it all the way until expiration?

Suppose that one is considering buying a call at a particular exercise price. What reasons could be given for the alternative of buying a call at a higher exercise price? At a lower exercise price?

Reference no: EM131326059

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