Suppose you write a call on Microsoft stock . The strike price is $175 and the stock price is $170.

Which of the following is true?

	1.	You should exercise it and earn a profit.
	2.	You should wait to exercise it.
	3.	You have no choice in when or if it is exercised.
	4.	It depends on if it is an American or a European option

Writing a put is considered what?

	1.	Bullish - you want the stock price to decrease
	2.	Bearish - you want the stock price to decrease
	3.	Bullish - you want the stock price to increase
	4.	Bearish - you want the stock price to increase