investor who writes standard call options against stock held in his or her portfolio is said to be selling what type of options?
A)In-the-money
B)Put
C)Naked
D)Covered
E)Out-of-the-money

Question

investor who writes standard call options against stock held in his or her portfolio is said to be selling what type of options?
A)In-the-money
B)Put
C)Naked
D)Covered
E)Out-of-the-money

Quizplus · Accepted Answer

Selling standard call options against stock held in the portfolio is known as covered call writing. The investor already owns the underlying stock, therefore the call options sold are covered by the stock held in the portfolio, making it a covered call.

Investor Who Writes Standard Call Options Against Stock Held in His