The Writer of a Call Option Is Obligated to Sell

question 136

True/False

The writer of a call option is obligated to sell the underlying currency to the buyer of the option if the option is exercised.

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Definitions:

Vocabulary

The set of words known and used by a person in speech and writing.

Private Speech

Verbal communication directed at the self, typical in early childhood, and used for self-guidance and regulation.

Self-Regulation

An individual’s ability to prevent himself or herself from making a dominant, preferred or automatic response in order to perform a nondominant response, such as when a hungry person is served food at a restaurant but waits to eat until everyone at the table has been served.

Precursor

An element, condition, or event that precedes and indicates the approach of something.