The Price That the Writer of a Put Option Receives

question 61

Multiple Choice

The price that the writer of a put option receives for the underlying asset if the option is exercised is called the

• A) strike price.
• B) exercise price.
• C) execution price.
• D) strike price or exercise price.
• E) None of the options are correct.

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Definitions:

Revenue

The total amount of income generated by the sale of goods or services related to a company's primary operations.

Suppliers

Businesses or individuals that provide goods or services to another entity, typically within a supply chain.

Chief Executive Officer

The highest-ranking officer in a company or organization, responsible for overall management and decision-making.

Insourcing

The practice of performing business functions or operations internally, rather than outsourcing them to external vendors.