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

question 102

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 option but not the requirement of selling 100 shares of GM for $85.00.
• B) will sell 100 shares of GM for $85.00 on the third Friday of October 2017.
• C) has the option to back out of this contract prior to the third Friday of October 2017.
• D) is required to post margin.

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Definitions:

Concurrent Exchange

A mechanism often seen in biological systems where two substances flow in opposite directions and exchange properties or elements, enhancing efficiency.

Oxygen Extracted

The process of removing oxygen from a compound or an environment, often to produce a specific chemical reaction.

Spiracles

Small openings on the surface of some animals, like insects, that lead to the respiratory system, allowing gas exchange.

Ventilate

To provide with a supply of fresh air by allowing air to flow through a space, often through natural or mechanical means.