Which One of the Following Statements Concerning Call Option Writers

question 83

Multiple Choice

Which one of the following statements concerning call option writers is true?

• A)Call option writers promise to purchase shares if the call option is exercised.
• B)The call option writer has the option,but not the obligation,to purchase shares if the option is exercised.
• C)The call option writer is betting that the market price of the underlying asset will increase.
• D)The call option writer receives a cash payment when the option is written.
• E)The call option writer earns a profit when an in-the-money option is exercised.