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123456789ABCD 123456789ABCD
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2 years ago
You sold (wrote) a call option on Initech stock with an exercise price of $165. The maturity date of the option is in May and the option is an American style option. Which of the following statements is TRUE?

▸ You are obligated to sell Initech shares for $165 at any time prior to the option expiration date in May, if the owner of the option chooses to exercise.

▸ You are obligated to sell Initech shares for $165 when the option expires in May, regardless of the stock's market price.

▸ You have the right to sell Initech shares for $165 at any time prior to the option expiration in May, regardless of the stock's market price.

▸ You are obligated to buy Initech shares for $165 when the option expires in May, regardless of the stock's market price.
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Corporate Finance Online

Corporate Finance Online


Edition: 2nd
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rudy.zondorudy.zondo
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