There's a call option written for 100 shares of GM stock for $85.00 a share, prior to the third Friday of October 2017: The option writer:

A. has the option to back out of this contract prior to the third Friday of October 2017.
B. will sell 100 shares of GM for $85.00 on the third Friday of October 2017.
C. has the option but not the requirement of selling 100 shares of GM for $85.00.
D. is required to post margin.


Answer: D

Economics

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