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

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

Quizplus · Accepted Answer

A writer (seller) of a call option expects the stock price to decrease or remain below the strike price until the option expires, so that the option will expire worthless and they can keep the premium received from selling the option.

A Writer of a Call Option Expects the Stock Price