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If the Writer of an Option, Holds Shares of the Stock

question 52

Multiple Choice

If the writer of an option, holds shares of the stock or an actual quantity of the commodity when she writes the call option on it, her position is said to be:


Definitions:

Workweek

A recurring period of seven consecutive days designated for work, usually comprised of Monday through Friday.

Balance Sheet

A financial statement that provides a snapshot of a company’s financial condition at a specific point in time, showing assets, liabilities, and shareholders’ equity.

Annual Depreciation

The allocation of the cost of a tangible asset over its useful life, reflecting the decrease in value due to wear and tear.

Monthly Basis

A timeframe or schedule that involves events or payments occurring once every month.

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