The holder of an in-the-money option that has one month to expiry would prefer to close out the position on the ASX market, rather than exercise the option.

Question

Quizplus · Accepted Answer

Closing out the position on the ASX market allows the holder to lock in their profits or limit their losses without having to go through the additional steps and costs of exercising the option.

The Holder of an In-The-Money Option That Has One Month