The Writer of a Call Option Has

question 39

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.
• E)the long position in the contract.

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Definitions:

Implicit Pressure

An unspoken or indirect force that influences individuals to act or think in a certain way, often stemming from societal or cultural expectations.

Minority Opinions

Views or beliefs held by a small segment of a community or group, which can differ significantly from the majority consensus.

Informational Influence

The effect of information or knowledge from others on an individual's attitudes, opinions, or behaviors.

Conversion Theory

The theory that minority group members can influence the majority to accept their beliefs or behaviors, even if they are in a less powerful position.