The call buyer is not obligated to exercise the option and buy the underlying asset, but the call writer is obligated to ____ if the option is exercised. ? sell the asset to the buyer at the strike price ? sell the asset to the buyer at the strike price and refund the premium ? sell the asset to the buyer at market price ? refund the call premium to the buyer
Added by Katherine R.
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A call option gives the buyer the right, but not the obligation, to buy an underlying asset at a predetermined price (the strike price) on or before a specific date. The seller (writer) of the call option is obligated to sell the asset if the buyer exercises the Show more…
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Which of the following is not true regarding options? a. The writer of a call option has the obligation to sell the currency to the buyer if the option if exercised. b. The buyer of a put option has the right to sell the currency at the strike price. c. The writer of a put option has the obligation to sell the currency to the buyer if the option is exercised. d. The buyer of a call option has the right to buy the currency at the strike price
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the trader sells the right but not obligation , to buy an asset from himself is taking is a short position in call option ?
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