The Writer of a Call Option Has

question 11

Multiple Choice

The writer of a call option has:

• A)the obligation to sell a security for a given price.
• B)the obligation to buy a security for a given price.
• C)the right to sell a security for a given price.
• D)the right to buy a security for a given price.

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Definitions:

Human Behavior

The range of actions and manners exhibited by humans in response to their environment, social dynamics, or internal states.

Economic Decisions

Choices made by individuals or organizations regarding the allocation of resources and the distribution of goods and services, often based on factors like cost, benefits, and economic conditions.

International Monetary Fund

An international organization created to foster global monetary cooperation, secure financial stability, facilitate international trade, and reduce poverty around the world.

Short-term Loans

Loans that are scheduled to be repaid in a short period, typically within a year, used for immediate financial needs.