If You Sell a Call Option on a Stock That

question 372

Multiple Choice

If you sell a call option on a stock that you don't own you:

• A) Have the right to force exercise of the option any time prior to maturity.
• B) May be forced to buy the underlying stock at the exercise price.
• C) Have a right to receive dividends on the underlying stock until exercise or maturity of the option.
• D) May be forced to sell the underlying stock at a fixed price if the option is exercised against you.
• E) May let the option expire without exercising it.

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Definitions:

Empirical

Pertaining to information acquired by observation or experimentation, used as a basis for knowledge and theory.

Analytically

In a manner that involves the systematic analysis or logical assessment of something.

Research Question

A specific query that guides a scientific study or research project.

Prejudice

The negative evaluation of a social group, and individuals within that group, based upon conceptions about that social group that are held despite facts that contradict it.