The strategy for the portfolio manager of a mutual fund to employ when call options are being sold on a stock that's held in the portfolio is :
A neutral strategy that's considered a conservative means of generating income when prices are stable.
A mutual fund is a company that collects money from many investors and invests that money in securities such as stocks, bonds, and short-term borrowings. The combined holdings of a mutual fund are called a portfolio. Investors buy shares in mutual funds.
Mutual funds work by pooling money from many investors. This money is used to purchase stocks, bonds, and other securities. Because mutual funds invest in a range of companies, they offer investors immediate diversification (and therefore less risk).
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