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

question 31

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 2006: The option writer:

• A)Has the option but not the requirement of selling 100 shares of GM for $85.00.
• B)Will sell 100 shares of GM for $85.00 on the third Friday of October 2006.
• C)Has the option to back out of this contract prior to the third Friday of October 2006.
• D)Is required to post margin.

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Definitions:

Deviant

Pertaining to behavior or actions that deviate from societal norms or expectations, often leading to social stigma or sanctions.

Cash Register Honesty

The principle or practice of being truthful and accurate in the handling of cash transactions and the management of cash registers.

Self-fulfilling Prophecies

A belief or expectation that an individual holds about a future event that manifests because the individual holds it.

Robert Merton

A prominent American sociologist who contributed to the sociology of science and developed the theory of deviance, including the concept of self-fulfilling prophecy.