There's a Call Option Written for 100 Shares of GM

question 62

Multiple Choice

There's a call option written for 100 shares of GM stock for $85.00 a share, prior to the third Friday of October 2017: The option writer:

• A) has the requirement to sell 100 shares of GM for $85 a share on or before the third Friday of October 2017 if the option holder wants to exercise the option.
• B) has the option to sell 100 shares of GM for $85 a share on or before the third Friday of October 2017.
• C) can cancel the option before the third Friday of October 2017.
• D) does not have to post margin while the option holder does.

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Definitions:

Vena Cavae

The two major veins (superior vena cava and inferior vena cava) that carry deoxygenated blood from the body back to the heart.

Cisterna Chyli

A dilated sac at the lower end of the thoracic duct into which lymph from the intestinal trunk and two lumbar lymphatic trunks flows.

Thoracic Duct

The main lymphatic vessel that drains lymph from the lower and left side of the body into the circulatory system.

Lumbar Trunks

Large lymphatic vessels in the lumbar region of the body that drain lymph from the lower limbs, abdominal wall, and pelvic organs.