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

question 62

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 requirement to sell 100 shares of GM for $85 a share on or before the third Friday of October 2017 if the option holder wants to exercise the option.
• B) has the option to sell 100 shares of GM for $85 a share on or before the third Friday of October 2017.
• C) can cancel the option before the third Friday of October 2017.
• D) does not have to post margin while the option holder does.

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Definitions:

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An evolutionary pattern in which one species becomes more similar in appearance to another.

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Uncanny Resemblance

A striking similarity or likeness between individuals, objects, or scenarios that is often surprising or eerie due to its precision.

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