Unexercised in the money?
Caveat: I just recently opened a personal trading account and am only playing long/short positions. My knowledge of options is limited.
Why are there so many unexercised in-the-money options? I'm looking at the options chain for F500 companies and seeing both puts and calls that are in the money. I realize that they're only 'in the money' for a few cents a piece, but why haven't they been exercised? Wouldn't firms with ultra-fast trade execution times and virtually non-existant trading fees simply exercise the in-the-money options and accumulate the small profits?
I must be missing something...
Thanks in advance for the help.