Multiple Choice
Eduardo owns an option that gives him the right to purchase shares of ABC stock at a price of $18 a share.Currently,the stock is selling for $21.60.He would like to profit on this stock but is not permitted to exercise his option for another 2 weeks.Contrary to other investors,he believes the stock price will decline significantly over the next 2 weeks.Given this situation,he should
A) sell his option today.
B) buy call options today that expire in 2 weeks.
C) wait for 2 weeks and then immediately exercise his option.
D) purchase shares of ABC today and then sell his option in 2 weeks.
E) just forget about it because he cannot profit from this situation.
Correct Answer:

Verified
Correct Answer:
Verified
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