Question

In: Finance

Complete the following sentence for each of these investors: a. A buyer of call options …...

  1. Complete the following sentence for each of these investors:

a. A buyer of call options …

b. A buyer of put options …

c. A seller (writer) of call options …

d. A seller (writer) of put options …

Solutions

Expert Solution

a. A buyer of call options … will have the right but not obligation to buy an underlying asset at a certain price and at a particular date in future.

b. A buyer of put options …will have the right but not obligation to sale an underlying asset at a certain price and at a particular date in future.

c. A seller (writer) of call options …will have the obligation to sale an underlying asset at a certain price and at a particular date in future.

d. A seller (writer) of put options …will have the obligation to buy an underlying asset at a certain price and at a particular date in future.


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