The writer of a bond call option
A)receives a premium and must stand ready to sell the bond at the exercise price.
B)receives a premium and must stand ready to buy bonds at the exercise price.
C)pays a premium and has the right to sell the underlying bond at the agreed exercise price.
D)pays a premium and has the right to buy the underlying bond at the agreed exercise price.

Question

Quizplus · Accepted Answer

The writer of a bond call option receives a premium and must be prepared to sell the bond at the exercise price if the option is exercised by the holder.

The Writer of a Bond Call Option