The writer of a call option has sufficient freely available underlying assets. If the current price of the underlying asset exceeds the strike price, then the writer misses the profit opportunity; because he must deliver the underlying assets to the buyer at the strike price, and cannot sell at the higher market value. – See covered call, commodity futures contract, underwater.
Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent!
University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
E-mail address: info@ekrah.com
https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk
https://www.jung-stilling-gesellschaft.de/merk/
https://www.gerhardmerk.de/