A writer of a call option expects the stock price to:
A)decrease.
B)increase.
C)remain unchanged.
D)cash dividends quarterly.

Name: A writer of a call option expects the stock price to: A)decrease. B)increase. C)remain unchanged. D)cash dividends quarterly.
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Question

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A writer (seller) of a call option expects the stock price to decrease or remain the same, as this would make the option less likely to be exercised by the buyer, allowing the writer to keep the premium received from selling the call option.

A Writer of a Call Option Expects the Stock Price