I've gained a good understanding of the theory behind Options but I've got a few outstanding issues that I would really like some help with.
Firstly, is there a metric that says how many options of a particular option code are available to purchase? I'm finding option codes in the search on the asx website and noting the bid, offer and all the other statistics but I'm trying to figure out how to determine that if I put an order for say, $500 on a particular option code, for example FMGLI9, that the order will pretty much go through guaranteed or if I have to check somewhere whether or not they are available to buy.
Second question sort of spins off the first one, Sometimes I've seen call options that have a much lower exercise price than the current share price. What stops a person from buying the options at $3.50 exercise price then immediately exercising them and selling them at the current price of $5?
Lastly, I'll be using Etrade to buy options once I'm confident. When I'm placing an order, is the net debit just the option price times how many options I want to buy?
Thanks very much for your help I do appreciate it.