A Writer of a Call Option Expects the Stock Price

question 25

Multiple Choice

A writer of a call option expects the stock price to:

• A)decrease.
• B)increase.
• C)remain unchanged.
• D)cash dividends quarterly.

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Definitions:

Bartered Goods

Items or services traded between parties without the use of money as a medium of exchange.

Second-hand Cars

Vehicles that have been previously owned and used by one or more owners.

Current-dollar GDP

Gross Domestic Product measured in current prices, without adjusting for inflation or deflation.

Constant-dollar GDP

Gross domestic product figures that have been adjusted for inflation to reflect the real value of goods and services produced in a country.