Chapter 02 · Section 2.1

Exercising Options-1

Now let us consider when it is profitable to exercise an option: Suppose you are the holder of a PHLX DM call option.

You will most likely decide to exercise when the option is:

a) out-of-the-money.
b) at-the-money.
c) in-the-money.
d) None of the above affect the decision to exercise.