Multiple Choice
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.
E) pays a premium and has the obligation to buy the underlying bond at the agreed exercise price.
Correct Answer:
Verified
Correct Answer:
Verified
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