Which of the Following Is Not True Concerning Call Option

question 43

Multiple Choice

Which of the following is not true concerning call option writers?

• A)Writers promise to deliver shares if exercised by the buyer.
• B)The writer has the option to sell shares but not an obligation.
• C)The writer's liability is zero if the option expires out-of-the-money.
• D)The writer receives a cash payment from the buyer at the time the option is purchased.
• E)The writer has a loss if the market price rises substantially above the exercise price.

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Definitions:

Reactivity

Occurs when the presence of a researcher causes the observed people to conceal certain things or act artificially to impress the researcher.

Participant-As-Observer

A research methodology in which the researcher is actively involved in the community or group being studied to gain an insider's perspective.

Feminism

A movement and ideology advocating for equal rights, opportunities, and treatment for women, fighting against gender-based discrimination.

Scientific Research Methods

Systematic and empirical methods of investigation used to increase or refine knowledge in the sciences, involving critical analysis, experimentation, and observation.