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The Seller of a Naked Call Is Betting That the Price

Question 92

Multiple Choice

The seller of a naked call is betting that the price of the underlying asset will:


A) decrease.
B) increase.
C) decrease and then increase prior to the expiration date.
D) will remain constant for a period of time and then increase prior to the expiration date.
E) have no effect on the value of the call.

Correct Answer:

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