Multiple Choice
Jillian owns a call option on WAN stock with a strike price of $20 a share.Currently,WAN is selling for $24.50 a share.Jillian would like to profit on this option but is not permitted to exercise the option for another two weeks.She believes the stock will decline in value before the two weeks is up.What should she do?
A) Sell her option today
B) Place an order to exercise her option on its expiration date
C) Purchase an additional call option on WAN today with a strike price of $20
D) Place an order to exercise her option as soon as she is permitted to do so
E) Convert her American option into a European option
Correct Answer:
Verified
Correct Answer:
Verified
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