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.
When you own an apple there is no use trying to get rid of it by selling an orange. A put is to a call what an apple is to an orange: they are just not the same thing.