Chapter 02 · Section 2.1

Long - IMM Calls 1

Suppose Victor entered a long position in 4 IMM March 45 DM calls in December. Now it is February, and the Deutsche Mark trades at $.45/DM.

Victor can offset (liquidate) his options position by selling:

a) 4 IMM March 45 DM calls.
b) 4 IMM March 45 DM puts
c) 4 IMM February 45 DM calls.
d) 4 IMM February 45 DM calls.

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