An investor who writes a call option closes the position by
A) purchasing the stock
B) selling the option
C) letting the option expire
D) repurchasing the option

Question

An investor who writes a call option closes the position by​
A) purchasing the stock​
B) ​selling the option
C) letting the option expire​
D) repurchasing the option

Quizplus · Accepted Answer

An investor who writes a call option can close the position by repurchasing the option. This action effectively cancels out the initial transaction, removing the obligation to sell the underlying asset at the option's strike price.

An Investor Who Writes a Call Option Closes the Position