The buyer of a call option has the right to exercise the option, but the writer of the call option has the
A)choice to offset with a put option upon exercise.
B)obligation to deliver the shares at the exercise price.
C)choice to deliver shares or take a cash payoff.
D)obligation to deliver a put option upon exercise.

Question

Quizplus · Accepted Answer

The writer of a call option has the obligation to deliver the shares at the exercise price if the option is exercised. They do not have a choice to offset with a put option, deliver a cash payoff, or deliver a put option upon exercise.

The Buyer of a Call Option Has the Right to Exercise