Multiple Choice
Assume the premium on a call option is $5 per share. Writing this call option when you already own 100 shares
A) requires an immediate investment of $500
B) generates no cash flow because you already own the stock
C) initially generates a positive cash flow of $500
D) eventually will require an investment of $500 unless the stock price increases enough
Correct Answer:
Verified
Correct Answer:
Verified
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