Multiple Choice
It is May 19 and you own a June European call on ABC Corp. with an exercise price of $50. The option trades at $40 and ABC is trading at $86. What should you do?
A) Exercise the option now and take the profits.
B) Buy more options on ABC Corp.
C) Sell your ABC stock before its price declines.
D) Sit and wait until the June expiration.
Correct Answer:
Verified
Correct Answer:
Verified
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