CALL OPTION TRADING ::

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Hi,
I want to add my question here.Please help me!
1.Say I have Nifty March call 3100 premium 60(I dont know exact premium!)
2.Nifty goes to 3200 by march end.
3.What I have to do for a profitable trade?
squre off the position before expiry, say for a premium of 100(I just gussed)and collect (100-60) * 100 =4000 or
wait for expiry to be exercised to get (3200-3100)*100 = 10000,Is it possible?
4.If we do not square off the position will the exchange automatically exercise it?or I wiil lose the premium paid?
Please help me.
thanks

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ANSWER :


Yes, in the money options are automatically exercised by the exchange on expiry.
Your profit in both cases will be the same. i.e. Rs. 4000.
If you do not square off, you will be paid off Rs. 10000. Your profit will be less the premium paid (Rs. 6000). So your profit will be Rs. 4000.