European options are exercised on the expiration date, while American options can be exercised at any time.

Suppose you are an American option, you can exercise it, and the option is already a real option. But the commission you pay is relatively high, and you can only make money if you exercise more than 2720. Assuming that the final exercise date is not reached at this time, it should be judged according to the market. If there is still room for bullish futures, continue to wait. If you are short at 2700, you can sell it or exercise it to maximize the loss.

Finally, I will give you a simple formula: (futures settlement price on exercise date-exercise price)-royalty =(2700-2600)- 120=-20 is your income.