A Writer of a Call Can Terminate the Contract Before

question 33

Multiple Choice

A writer of a call can terminate the contract before expiration by:

• A) writing a second call.
• B) buying a put.
• C) buying a comparable call.
• D) writing a put.

---

Definitions:

Constant

A value that does not change and remains fixed within a given context or equation.

Y-axis

The vertical axis in a graph or chart, typically representing the dependent variable.

X-axis

The horizontal axis in a two-dimensional graph, typically representing the independent variable.

Positive Relationship

A positive relationship in economics indicates that an increase in one variable is associated with an increase in another variable.