FIN 534 Homework Chapter 81. An investor who writes standard call options against stock held in his or her portfolio is said to be selling what type of options? 2. Cazden Motors stock is trading at $30 a share. Call options on the companys stock are also available some with a strike price of $25 and some with a strike price of $35. Both options expire in three months. Which of the following best describes the value of these options? 3. Braddock Construction Co.s stock is trading at $20 a share. Call options that expire in three months with a strike price of $20 sell for $1.50. Which of the following will occur if the stock price increases 10% to $22 a share? 4. Which of the following statements is CORRECT? a. Call options generally sell at a price greater than their exercise value and the greater the exercise value the higher the premium on the option is likely to be. 5. Which of the following statements is CORRECT?