A Call Option Writer

question 29

Multiple Choice

A call option writer:

• A) is obliged to buy the underlying security if the option is exercised.
• B) has a maximum profit equal to the premium plus the strike price.
• C) makes a loss to the left of the strike price.
• D) none of the above.

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Definitions:

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IQ Scores

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Predicting Behavior

The process of forecasting future actions based on past and present observations or data.

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The ability to shape or control the actions of individuals or the direction of events.