The Writer (Seller) of a Regular Exchange-Listed Call-Option on the Stock

question 10

Multiple Choice

The writer (seller) of a regular exchange-listed call-option on the stock:

• A) has the right to buy 100 shares of the underlying stock at the exercise price
• B) has the right to sell 100 shares of the underlying stock at the exercise price
• C) has the obligation to buy 100 shares of the underlying stock at the exercise price
• D) has the obligation to sell 100 shares of the underlying stock at the exercise price