The seller of an American call has the:
A) Right, but not the obligation, to buy an asset at the strike price on or before the expiration date.
B) Right, but not the obligation, to buy an asset only on the expiration date.
C) Right, if they so choose, to sell an asset at the strike price on or before the expiration date.
D) Obligation to sell an asset on or before the expiration date, if the buyer exercises the option.
E) Obligation to sell an asset at the strike price on the expiration date.

Question

Quizplus · Accepted Answer

The seller (also known as the writer) of an American call option has the obligation to sell the underlying asset at the strike price if the buyer decides to exercise the option on or before its expiration date.

The Seller of an American Call Has The