The Price That the Writer of a Put Option Receives

question 62

Multiple Choice

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

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

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Definitions:

Quantitative Changes

Changes that can be measured or quantified, typically referring to growth or alteration in size, amount, or degree.

Documenting

involves the process of recording or capturing information for the purpose of preserving or providing evidence.

Vocabulary

The set of words that an individual knows and uses in their language or in a particular subject.

Mechanistic

Describes a view or theory that attributes the phenomena of life to mechanical processes, without reference to consciousness or intent.