At Expiration, the Writer of a Stock Index Call Option

question 50

Multiple Choice

At expiration, the writer of a stock index call option that was written at the money will be required to:

• A) deliver the underlying stocks in the index if the index value moves up.
• B) deliver the underlying stocks in the index if the index value moves down.
• C) deliver a cash value if the index value moves up.
• D) deliver a cash value if the index value moves down.

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Definitions:

Business Suits

Formal attire typically worn in professional settings, consisting of a jacket and trousers or a skirt made from matching fabric.

Lawyer

A professional who is qualified to offer advice about the law or represent someone in legal matters.

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An acute lung pathology characterized by the filling of airspaces with liquid instead of air, often seen in pneumonia.

Bronchophony

An abnormal increase in the clarity of transmitted voice sounds heard when auscultating the lungs, indicative of lung pathology.