A Writer of a Call Option Expects the Stock Price

question 25

Multiple Choice

A writer of a call option expects the stock price to:

• A)decrease.
• B)increase.
• C)remain unchanged.
• D)cash dividends quarterly.

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Definitions:

Owner

An individual or entity that legally possesses property, rights, or titles.

Authority

The legal power or right given to an individual or entity to act on behalf of another or make decisions within certain guidelines or scopes.

Specified Time

A clearly defined or established period within which something is supposed to happen or be completed.

Confidential

Information, documents, or communications that are intended to be kept secret or private, often due to their sensitive nature.