In Order to Closeout an Unprofitable Position on a Short

question 117

Multiple Choice

In order to closeout an unprofitable position on a short put, the option trader would:

• A)buy puts with the same expiry date and exercise price
• B)sell puts with the same expiry date and exercise price
• C)buy calls with the same expiry date and exercise price
• D)sell calls with the same expiry date and exercise price.
• E)Short option positions must be maintained until expiry.