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In Order to Closeout an Unprofitable Position on a Short

Question 87

Multiple Choice

In order to closeout an unprofitable position on a short put, the option trader would:


A) buy puts with the same expiry date and exercise price
B) sell puts with the same expiry date and exercise price
C) buy calls with the same expiry date and exercise price
D) sell calls with the same expiry date and exercise price.
E) Short option positions must be maintained until expiry.

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