SIE Exam Practice Question 420

Question: 420

A short call is:

A. An option contract where the investor has a contractual obligation, for the duration of the contract, to deliver the underlying instrument at the strike price upon exercise.

B. An option contract where the investor has a contractual obligation until expiry to purchase the underlying instrument at the exercise price upon exercise.

C. An option contract where the investor has borrowed a call option from an investor with a long position and sold it short in anticipation of a decline in the option premium prior to expiry.

D. An option contract where the investors has the right to purchase the underlying instrument at any time prior to option expiration at the designated strike price.

SIE Exam Practice Question 420

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