​Which of the Following Is True of Options

question 24

Multiple Choice

​Which of the following is true of options?

• A) ​The writer decides whether the option will be exercised.
• B) ​The writer pays the buyer the option premium.
• C) ​The buyer decides if the option will be exercised.
• D) ​More than one of these.

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Definitions:

Anion

Ion carrying a negative charge.

Positively Charged

Having more protons than electrons, resulting in a net positive electric charge.

Negatively Charged

Refers to atoms or molecules that have gained one or more electrons, resulting in a net negative charge.

Molecule

The smallest physical unit of an element or compound, consisting of one or more atoms held together by chemical forces.