Which of the following is true about writing a covered call? choose two)
A) It involves buying the stock and selling a call option on the stock.
B) It involves selling the stock and selling a call option on the stock.
C) It is equivalent to buying a put option plus borrowing a certain amount of cash.
D) It is equivalent to selling a put option plus borrowing a certain amount of cash.

Question

Quizplus · Accepted Answer

The Answer of Which of the following is true about writing a covered call? choose two)
A) It involves buying the stock and selling a call option on the stock.
B) It involves selling the stock and selling a call option on the stock.
C) It is equivalent to buying a put option plus borrowing a certain amount of cash.
D) It is equivalent to selling a put option plus borrowing a certain amount of cash.

Which of the Following Is True About Writing a Covered