The Seller of a Call Option Makes the Most Profit

question 15

Multiple Choice

The seller of a call option makes the most profit when the option

• A)is exercised immediately.
• B)expires without being exercised.
• C)is in the money.
• D)is converted into shares.
• E)is not exercised until the expiration date.

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Definitions:

Gametes

Reproductive cells (sperm in males and eggs in females) that carry half the genetic information of an organism and combine during fertilization.

Allele Frequencies

The relative proportions of different alleles of a particular gene in a given population.

Inheritance of Acquired Characteristics

An outdated scientific theory that proposed individuals can pass on traits acquired during their lifetime to their offspring.