The buyer of a call option has the right to exercise, but the writer of the call option has:
A) The choice to offset with a put option
B) The obligation to deliver the shares at exercise price
C) The choice to deliver shares or take a cash payoff
D) The choice of exercising the call or not

Question

Quizplus · Accepted Answer

The writer of the call option has the obligation to deliver the shares at the exercise price if the buyer chooses to exercise the option. This is because the writer of the call option has sold the right to buy the shares at the exercise price to the buyer, and therefore, must fulfill their obligation if the buyer chooses to exercise.

The Buyer of a Call Option Has the Right to Exercise