Long dated options question

C

Coder2

Hello,

I've only been studying options for a few months, and I have a question that I can't find an answer to.

If I bought a USDJPY Dec 08 96.00 call, and the USDJPY hit 103.00 in July 08, could I lock this profit in by
squaring the trade by selling a USDJPY Dec 08 call in July 08?

Would I have to hold these positions until Dec 08?

Specifically, what would happen to this trade over time?

Thank you for your assistance.

Coder :)
 
If you sell the call in July with usdjpy at 103 it will be at least 7 points value (in reality 7+time value). The position will be closed, not "locked". You'll recieve 7 points per one contract less premium paid for call less commisions.
 
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