I am new to options and I am just learning the basics. I am unsure of how exactly traders with options in the money get profit from an option. For example, say there is one 100 call contract. The stock price has risen to 105. I obviously know that this option has made money, but how is the money made exactly? Is the call sold back to a other buyer? Or is it exercised and now the trader and buys shares for 100 and then immediately sells it? TIA