Expiration after hours

Quantitative Finance Level 3

You own the straddle on the $10 strike. On expiration, when the market closed at 4pm EST, the stock price was $10.16. There was news at 415pm which sent the stock price down to $9.52. What should you do?

Image credit: NYSE
Nothing, you made money Let your broker know that you want to exercise the put and not exercise the call Let your broker know that you do not want to exercise the call Nothing, your broker will take care of it Let your broker know that you want to exercise the put Nothing, you lost money

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Calvin Lin by Calvin Lin

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