Say you want to do a short call against a strike price of k
, on 100 shares on a stock. Let's say the current price is c
.
My question is: when you want to actually execute this call on a real platform, do you need to provide proof that you actually have 100 shares of the stock on you? If not, how does the exchange guarantee that you will be able to give your long trading pair their 100 shares when they exercise their right to buy them at a price of k
?