An Option Holder Can Perform Each of the Following Except

question 70

Multiple Choice

An option holder can perform each of the following except:

• A)exercise the option and trade the underlying shares
• B)let the option lapse
• C)closeout their position by buying an option in the same series
• D)capture the option's intrinsic value and time value by closing-out before expiry.
• E)All of these.

---

Definitions:

Unsecured Creditor

A lender or creditor that extends credit without obtaining specific collateral, ranking below secured creditors in the event of a bankruptcy.

Perfect

To bring something to a state of completeness or flawlessness; in legal and financial contexts, to finalize or make an action legally binding.

Collateral

An asset offered to secure a loan or other credit, which can be seized by the lender if the loan is not repaid.

Automatic-Perfection Period

A specified timeframe following the attachment of a security interest during which the interest is considered perfected without filing.