Chapter 02 · Section 2.1

PHLX DM Call

Suppose a PHLX DM call option is exercised.

What is the effect of exercise?

a) The call holder receives dollars.
• b) The call writer receives dollars.
  Yes. When the call holder exercises his right to buy DM at a rate of exchange equal to the exercise price, a call writer delivers DM and receives the payment in dollars. Continue

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