The correct answer is: B. covered option.
A covered option is an option contract that is written by an investor who owns the underlying asset. This means that the investor has the ability to deliver the asset if the option is exercised. Covered options are considered to be less risky than uncovered options, which are options contracts that are written by an investor who does not own the underlying asset.
An investor who writes stock call options in his own portfolio is classified as a covered option writer. This is because the investor owns the underlying stock, which means that he has the ability to deliver the stock if the option is exercised.
A due option is an option contract that is about to expire. An undue option is an option contract that has expired.
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