- CFA Exams
- CFA Level I Exam
- Topic 7. Derivatives
- Learning Module 2. Forward Commitment and Contingent Claim Features and Instruments
- Subject 2. Contingent Claims: Options
CFA Practice Question
The buyer of a call option has the choice to exercise, but the writer of the call option has ______.
B. the obligation to deliver the shares at exercise
C. the choice to deliver shares or take a cash payoff
D. the obligation to call the shares in
E. the choice of exercising the call or not
A. the choice to offset with a put option
B. the obligation to deliver the shares at exercise
C. the choice to deliver shares or take a cash payoff
D. the obligation to call the shares in
E. the choice of exercising the call or not
Correct Answer: B
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