Three weeks ago, you sold an IBM September $110 call option for $2.25. Now, in August, IBM is selling for $117.50 per share and your call is trading for $9.75. Ignoring transactions costs, you may do which of the following?
A) Exercise the call and then sell the 100 shares of IBM stock for $117.50 per share
B) Exercise the call and sell 100 shares of IBM for $110 per share
C) Forego your right to exercise the call until later
D) Sell the call to net a $7.50 profit per share
E) Sell an additional call option contract for $9.75
Correct Answer:
Verified
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