If an investor is trying to cancel their short position in a call option, they should:
A)buy the underlying asset.
B)sell the underlying asset.
C)buy the call option.
D)sell the call option.

Question

Quizplus · Accepted Answer

To cancel a short position in a call option, the investor should buy the same call option. This action neutralizes the position by effectively closing it out.

If an Investor Is Trying to Cancel Their Short Position