Question

For the call sellers, when S(T)=2000 and X=1000, what is the seller’s right action? -Choose to...

For the call sellers, when S(T)=2000 and X=1000, what is the seller’s right action?

-Choose to exercise the call

-Choose not to exercise the call

-The seller waits until the call buyer decides to exercise the call

-The seller waits until the call buyer decides not to exercise the call

-None of above

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Answer #1

please find below the solution... let me know if you need any clarification...

correct answer is option : The seller waits until the call buyer decides to exercise the call

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