A writer of a call option expects the stock price to:
A)Decrease
B)Increase
C)Remain unchanged
D)Cash dividends quarterly

Name: A writer of a call option expects the stock price to: A)Decrease B)Increase C)Remain unchanged D)Cash dividends quarterly
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Question

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A writer of a call option expects the stock price to decrease because they profit from the premium received if the option expires worthless, which happens when the stock price is below the strike price at expiration.

A Writer of a Call Option Expects the Stock Price