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.

Question

Quizplus · Accepted Answer

The writer of a call option has an obligation to sell shares if the option is exercised by the buyer, not an option to sell.

Which of the Following Is Not True Concerning Call Option