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 requirement to sell 100 shares of GM for $85 a share on or before the third Friday of October 2006 if the option holder wants to exercise the option.
B)Has the option to sell 100 shares of GM for $85 a share on or before the third Friday of October 2006.
C)Can cancel the option before the third Friday of October 2006.
D)Does not have to post margin while the option holder does.

Question

Quizplus · Accepted Answer

The option writer is obligated to sell 100 shares of GM at $85 per share if the option holder exercises the option before the expiration date.

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