1. If you sell-to-open a call, you:

have the right but not the obligation to buy the stock at the strike price, regardless of the market price.

have the right but not the obligation to sell the stock at the strike price, regardless of the market price.

have the obligation to buy the stock at the strike price, regardless of the market price.

have the obligation to sell the stock at the strike price, regardless of the market price.

2. Risk averse individuals will:

always choose the lowest risk alternative.

always choose the highest return alternative

always ignore risk when making choices

neither of the above statements is correct