The Seller of a Call Option (With an Exercise Price

question 36

True/False

The seller of a call option (with an exercise price of $18.50, sold for $1.05)over JB Hi-Fi shares will make a loss of $1.26 per share if the holder exercises when the share price is $19.76.

---

Definitions:

Corporate Funds

Money or financial resources that belong to a corporation and are used for its business operations and activities.

Dishonesty

Conduct that shows a lack of integrity or honesty in actions, often leading to deception or fraud.

Subrogated

The process by which an insurance company, having paid out a claim, acquires the legal right to pursue recovery from third parties responsible for the damage.

Principal Debtor

The main individual or entity who is obligated to repay a debt or loan according to the terms agreed upon.