The price that the writer (seller) of a call option receives for the underlying asset when the option buyer exercises her option is called the Group of answer choices
option premium
option price
strike price
spot price
the price that the writer (seller) of a call option receives for the underlying asset when the option buyer exercises her option is called:-
c) strike price
The price that the writer (seller) of a call option receives for the underlying asset when...
When a put option is exercised, the: seller of the option receives the strike price. seller of the option receives the option premium. buyer of the option sells the underlying asset and receives the option premium. buyer of the option pays the option premium and receives the underlying asset. seller of the option must buy the underlying asset and pay the strike price.
When a put option is exercised, the: Multiple Choice seller of the option receives the strike price. seller of the option receives the option premium. buyer of the option sells the underlying asset and receives the option premium. Incorrect buyer of the option pays the option premium and receives the underlying asset. seller of the option must buy the underlying asset and pay the strike price.
27. The writer (seller) of a put option a. agrees to sell shares at a set price if the option holder desires b. agrees to buy shares at a set price if the option holder desires c. has the right to buy shares at a set price d. has the right to spl shares at a set price 17. A call option is said to be "in-the-money" if a. the stock price (i.e. the underlying asset) is greater than the...
An American call option gives the writer the _________ to _________ the underlying asset at the exercise price on or before the expiration date. Multiple Choice obligation, sell obligation, buy right, buy right, sell
The price that the buyer of a call option pays to acquire the option is called the Group of answer choices forward price option premium exercise price execution price strike price
Who will gain if the price of an underlying asset falls? A. the seller of a futures contract B. the buyer of a put option C. the buyer of a call option D. the buyer of a futures contract E. both (A) and (B)
The buyer of a call option has the right to exercise the option, but the seller (writer) of the call option has the: answer choices A. choice to offset with a put option upon exercise. B. obligation to deliver the shares at the exercise price. C. choice to deliver shares or take a cash payoff. D. obligation to deliver a put option upon exercise.
Determine the profit or loss to call buyer and call writer for the following call options when the stock is selling at $32 just prior to expiration of the options and the option premium is $2.50. a. $25 strike price b. $30 strike price c. $35 strike price
If the spot price of the underlying asset is greater than the strike price, a call option is ______ and a put option is ______. A. in the money; out of the money B. out of the money; in the money C. in the money; in the money D. out of the money; out of the money E. at the money; at the money
A holder of a call option will want the value of the underlying asset to __________, and a writer of a put option will want the value of the underlying asset to _________. A. decrease; increase B. increase; increase C. increase; decrease D. decrease; decrease