An Investor Who Holds a Short Call Option on IBM

question 16

Multiple Choice

An investor who holds a short call option on IBM stock is implicitly

• A) Bullish on direction and bearish on volatility
• B) Bearish on direction and bullish on volatility
• C) Bearish on direction and volatility
• D) Bullish on direction and volatility

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Definitions:

Rights to the Sky

Legal rights related to the use and control of the airspace above a piece of land, often impacting construction and property law.

Trespass

An unauthorized intrusion or infringement on another person's property or rights.

Periodic Tenancy

Automatically renewing tenancy with no specific termination date.

Term Lease

A lease agreement that is set for a specified duration of time, after which it may be renewed or terminated.