There's a call option written for 100 shares of GM stock for $85.00 a share, prior to the third Friday of October 2006: The option writer:
A)Has the option but not the requirement of selling 100 shares of GM for $85.00.
B)Will sell 100 shares of GM for $85.00 on the third Friday of October 2006.
C)Has the option to back out of this contract prior to the third Friday of October 2006.
D)Is required to post margin.

Question

Quizplus · Accepted Answer

The option writer is required to post margin to ensure they can fulfill the obligation if the option is exercised.

There's a Call Option Written for 100 Shares of GM