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.

---

Definitions:

Converted

Refers to customers or users who have taken a desired action as a result of marketing efforts, such as making a purchase or signing up for a newsletter.

Threats

External factors or conditions that could potentially cause harm to an organization's ability to achieve its goals.

Capabilities

the qualities, resources, and skills that an organization or individual possesses, enabling them to perform effectively.

SWOT Analysis

A strategic planning tool that evaluates an organization's strengths, weaknesses, opportunities, and threats to assist in making informed decisions.