It is Nov 11 and you are long one call option on Apple Inc. stock with a strike price of $85 and expiration in December. The stock is currently trading for $93 and the option is trading for $10.65. Assume that the option is American. We want to close the position today. Other than exercising the call option, how else can you close your position?

Looking for the reasoning as to why C) Take a short position in the December Call with a strike price of $85, is correct.

Since it is American, you can only exercise it on the expiry date. Sell it. *Take a short position in the December Call with a strike price of $85. Buy shares in Apple (100 for each call contract). Take an offsetting position in the December put option with the $85 strike price