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What is the difference between spot price, strike price and exercise price?
What happens at expiration if an option is in-the-money?
If an option is in-the-money at expiration, it will be automatically exercised. For example, if a call option has a strike price of $50 and the stock is trading at $60, the option will be exercised and the holder will buy the stock at $50 and immediately sell it at $60 to realize a profit.