A call option gives the owner the right to buy an asset but does not create an obligation to do so. If you give or sell someone an option, what rights and obligations have you incurred? For example, suppose you sell someone an option to buy a piece of land. You receive $2,500 for the option, and the buyer has 6 months to decide whether or not he wants to buy the land at the agreed-upon price. a) What obligation and restriction do you have as the seller of the option? b) If the option holder decides to exercise the option, does that imply that the value of the land has risen or fallen during the 6 months? c) When the option is exercised, who gains and who loses?