Which of the Following Statements Is Correct

question 6

Multiple Choice

Which of the following statements is correct?

• A) The writer (seller) of a call option on shares receives a fee from the buyer of the option
• B) The writer (seller) of a call option on shares may or may not have to sell the shares to the buyer of the option
• C) The writer (seller) of a call option on shares has an obligation to sell the shares at a future time to the buyer of the option
• D) All of the above are correct

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Definitions:

Expatriates

Employees who reside and work in a country other than their native country, often for an international company.

Multinational Firm

A company that operates in multiple countries, managing production or services in more than one country outside of its home country.

TN Visa

A type of visa under the North American Free Trade Agreement (NAFTA) that allows citizens of Canada and Mexico to work in the United States in prearranged business activities for U.S. or foreign employers.

NAFTA

North American Free Trade Agreement, a treaty between Canada, Mexico, and the United States that eliminated most tariffs and trade barriers between the countries.