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The Writer of a Call Option Is Obligated to Sell

question 141

True/False

The writer of a call option is obligated to sell the underlying currency to the buyer of the option if the option is exercised.

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Definitions:

Check-Processing Time

The duration it takes for a bank to process a check payment, clearing the funds from the payer's account to the payee.

Overdrafts

A financial situation where an individual withdraws or spends more money than is available in their account, leading to a negative balance.

Account-Holder

An individual or entity that owns an account in a bank or similar financial institution.

Online Payment Systems

Digital platforms that facilitate the transfer of money between buyers and sellers over the internet.

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