Author Question: You sold (wrote) a call option on Initech stock with an exercise price of $165. The maturity date of ... (Read 220 times)

Zulu123 · **on:** Apr 25, 2021

You sold (wrote) a call option on Initech stock with an exercise price of $165. The maturity date of the option is in May and the option is an American style option. Which of the following statements is TRUE?
◦ You are obligated to sell Initech shares for $165 at any time prior to the option expiration date in May, if the owner of the option chooses to exercise.
◦ You are obligated to sell Initech shares for $165 when the option expires in May, regardless of the stock's market price.
◦ You have the right to sell Initech shares for $165 at any time prior to the option expiration in May, regardless of the stock's market price.
◦ You are obligated to buy Initech shares for $165 when the option expires in May, regardless of the stock's market price.

amanda_14 · **Reply #1 on:** Apr 25, 2021

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