One Reason That Writing Options Can Be a Viable and Profitable

question 3

Multiple Choice

One reason that writing options can be a viable and profitable investment strategy is that

• A) an option writer can exercise the option to avoid a potential loss.
• B) most options expire unexercised.
• C) an option writer determines when the option is exercised.
• D) the option writer collects the quarterly dividends.

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Definitions:

Spontaneous Remission

The unexpected improvement or cure of a disease or condition without any medical intervention.

Willful

Showing a strong determination or willingness to do something, often implying a certain stubbornness or refusal to yield.

Cathartic

An emotional release or purification that brings about renewal or restoration, often used in the context of therapeutic settings.

Subjective Well-Being

An individual's self-assessment of their own happiness and satisfaction with life.