Series 6 - Investment Company And Variable Contracts Products Representative Exam
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What position does the seller of a call option have when they are obligated to sell the stock at the strike price if the call option is exercised?
Bullish
A
Bearish
B
Cash
C
Dividend
D
Explanations
If selling a call contract, the seller becomes obligated to sell the stock at the strike price if the call option is exercised-a bearish position. The resulting position would be a short stock position.