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Which of the following is not true concerning call option writers?

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Which of the following is not true concerning call option writers?;A. Writers promise to deliver shares if exercised by the buyer.;B. The writer has the option to sell shares but not an obligation.;C. The writer's liability is zero if the option expires out-of-the-money.;D. The writer receives a cash payment from the buyer at the time the option is purchased.;E. The writer has a loss if the market price rises substantially above the exercise price.

 

Paper#28904 | Written in 18-Jul-2015

Price : $27
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