Most investors close their positions by exercising their options.

Name: Most investors close their positions by exercising their options.
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Question

Quizplus · Accepted Answer

Most investors actually close their options positions by selling their options contracts back into the market rather than exercising them. Exercising an option means actually buying or selling the underlying asset, which may not be the most efficient or cost-effective way to exit the position.

Most Investors Close Their Positions by Exercising Their Options