The Price That the Writer of a Call Option Receives

question 102

Multiple Choice

The price that the writer of a call option receives to sell the option is called the

• A) strike price.
• B) exercise price.
• C) execution price.
• D) acquisition price.
• E) premium.

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Definitions:

Direct Price Discrimination

The practice of charging different prices to different consumers for the same good or service, based directly on the willingness of each customer to pay.

Elastic Demand

A situation where the demand for a product or service varies significantly in response to changes in price.

Low-value Group

A classification referring to items or individuals perceived as offering less benefit, importance, or financial value compared to others.

Price Discrimination

A pricing strategy where identical or substantially similar goods or services are sold at different prices by the same provider in different markets or to different buyers.