A Writer of a Call Option on BHP Shares Has

question 23

Multiple Choice

A writer of a call option on BHP shares has __________

• A)The right to buy BHP shares at a specified price
• B)The obligation to sell BHP shares at a specified price if the contract is exercised
• C)The right to sell BHP shares at a specified price
• D)The obligation to buy BHP shares at a specified price if the contract is exercised

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Definitions:

Long-Term Liabilities

Financial obligations of a business that are due more than one year in the future, such as bonds payable, long-term loans, and lease obligations.