Consider a speculator with a long American put option on a stock. The put has a strike of $45 and a maturity of 3 months. The stock is priced at $35 and has no expected dividends over the coming 3 months. The speculator believes the stock price has bottomed out and wishes to close their position. The speculator should

1. Do nothing because it is never optimal to exercise early.
2. Exercise the option, by buying the stock from the option seller.
3. Sell an otherwise equivalent American call.
4. Engage in arbitrage by shorting a futures contract on the stock.
5. None of the above.

Group of answer choices