Question
You sold an American Put option. It has six more months to expire (T = 6-month) The stock is now below the exercise price (S
You sold an American Put option. It has six more months to expire (T = 6-month) The stock is now below the exercise price (S < X). You are nervous and wish to get out of this situation right now. What is your BEST course of action?
Group of answer choices:
Exercise the put option
Buy an identical call option
Sell an identical call option
Buy an identical put option
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Financial Markets And Institutions
Authors: Anthony Saunders, Marcia Cornett
7th Edition
1259919714, 978-1259919718
