The seller of a European call option has the:
A)right, but not the obligation, to buy a stock at a specified price on a specified date.
B)right to buy a stock at a specified price during a specified period of time.
C)obligation to sell a stock on a specified date but only at the specified price.
D)obligation to buy a stock some time during a specified period at the specified price.
E)obligation to buy a stock at the lower of the exercise price or the market price on the expiration date.

Question

Quizplus · Accepted Answer

The seller (writer) of a European call option has the obligation to sell the underlying stock at the strike price if the option is exercised by the buyer on the expiration date. European options can only be exercised at expiration, not before.

The Seller of a European Call Option Has The