If you sell a call option on a stock that you don't own you:
A) Have the right to force exercise of the option any time prior to maturity.
B) May be forced to buy the underlying stock at the exercise price.
C) Have a right to receive dividends on the underlying stock until exercise or maturity of the option.
D) May be forced to sell the underlying stock at a fixed price if the option is exercised against you.
E) May let the option expire without exercising it.

Question

Quizplus · Accepted Answer

When you sell a call option without owning the underlying stock, you may be forced to sell the stock at the exercise price if the option is exercised against you.

If You Sell a Call Option on a Stock That