A hedge fund has written a call option on shares of a company with an exercise price of $17.45,and simultaneously also buys a call option on the same share with an exercise price of $16.95.The hedge fund is considered to have written a/an:

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The hedge fund has written a call option with an exercise price of $17.45 and simultaneously bought a call option on the same share with an exercise price of $16.95, which is known as a covered call option. This strategy involves holding a long position in the underlying asset (in this case, shares of a company) while at the same time writing a call option on the same asset to generate income.

A Hedge Fund Has Written a Call Option on Shares