An investor has a portfolio of blue-chip stocks and anticipates stability in the market with the possibility of minor declines. This investor decides to write covered calls on the securities held in the portfolio. What is the result of this action?[A] The investor gains leverage on the underlying security by writing options contracts.[B] The investor is guaranteed not to lose premiums on the positions because the options are covered.[C] The investor can expect exercise notices on the calls if the price of securities held in the portfolio goes down.[D] The investor can expect income from the premiums received when selling the covered calls.
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