Dodi plans to sell his common shares but is concerned about price fluctuations. What should he do?

The appropriate course of action for Dodi, who is concerned about price fluctuations while planning to sell his common shares, would be to exercise his put options to sell at $30.

By exercising the put options, Dodi locks in a selling price for his shares, effectively protecting himself from any downward price movements in the market. Put options allow an investor the right to sell shares at a specified price, known as the strike price, regardless of the current market price. In this case, if the market price falls below $30, Dodi can still sell his shares at the predetermined price, ensuring he does not incur a loss beyond a certain threshold.

In contrast, the other options present different strategies that do not provide the same level of protection against price fluctuations. Selling shares immediately could result in selling at a lower price if the market price drops after he sells. Letting options expire means missing out on the opportunity to sell at the preferred price, especially if he has a put option poised to cover potential losses. Holding shares until they appreciate carries the risk that the price may decrease rather than increase, which could lead to greater losses in the investment.