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:

Regulatory Solution

A method implemented by a government or an authority to control or manage issues through regulations.

Removed Only for Cause

A principle that an individual cannot be removed from their position without justifiable reasons.

Administrative Agencies

Governmental bodies with the authority to implement and administer particular legislation, often involved in regulating certain areas of activity.

Government Bodies

Organizations or agencies established by a government to carry out specific functions or provide services.