Choosing to trade at the strike price under an option is described as:
AExpanding
BExporting
CExercising
DExhibiting
Answer & Solution
Correct answer: C. Exercising
1. The alternative is letting the option lapse.
2. Acting on the contract terms has its own name.
3. That act is exercising the option.
_Source: OpenStax Principles of Finance 2e, Chapter 20, Risk Management and the Financial Manager._
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