It Is May and You Own a June Call on ABC

Multiple Choice

It is May and you own a June 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 the stock of ABC Corp because option traders seem to be optimistic about its prospects.
C) Sell your ABC stock before its price declines.
D) Sit and wait until the June expiration.