You have a long position in December put option on the shares of Heartless Enterprises Inc. with a strike price of $40. It is a European option. Today (in November), Heartless shares are trading for $30 and you want to close your position. What do you do?

I. Sell a December call option

II. Exercise your option

III. Sell a December put option

a. I only

b. II only

c. III only

d. II or III

Answer rating: 100% (QA)

The detailed answer for the above question is provided below To decide the best strategy we shou... View the full answer