The Buyer of a Call Option Has the Right to Exercise

question 47

Multiple Choice

The buyer of a call option has the right to exercise, but the writer of the call option has:

• A) The choice to offset with a put option
• B) The obligation to deliver the shares at exercise price
• C) The choice to deliver shares or take a cash payoff
• D) The choice of exercising the call or not

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Definitions:

Civil Rights Act

Landmark legislation in the United States that outlawed discrimination based on race, color, religion, sex, or national origin, primarily associated with the Civil Rights Act of 1964.

Racial Discrimination

Unfair or unequal treatment of people based on race or ethnicity, leading to disadvantages in employment, education, and in the legal system.

National Origin

Refers to the country where a person was born, or more broadly, the country from which an individual or their ancestors originally come.

Sexual Orientation

A person's emotional, romantic, or sexual attraction to others, often categorized as heterosexual, homosexual, bisexual, among others.