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NEW QUESTION: 1
In which of the following ways are calls and put options used by the options investor in purchase and sales transaction?
I. A long call allows the investor to purchase the underlying security at the specified strike price after the option expiration date
II. Along put allows the investor to sell the underlying security at the specified strike price until the option expiration date
III. An investor who is short a call is at the underlying security at the specified strike price if a call option is exercised after the option expiration date
IV. An investor who is short a put is obligated to buy the underlying security at the specified strike price if a put option is exercised by the option expiration date
A. II and IV only
B. I and III only
C. II and III only
D. I and II only
Answer: A

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