If a Company Writes an Option, It

question 40

Multiple Choice

If a company writes an option, it

• A) pays a fee and gains a right.
• B) charges a fee and gives the holder a right.
• C) charges a fee for handling option transactions.
• D) endorses an option over to another party.

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Definitions:

Market Economy

A type of economic system where supply and demand from consumers primarily determine the production of goods and services.

High Earnings

A term typically referring to significantly above-average income or profits.

Automated Production

The use of technology and machinery to control production processes, reducing the need for human labor.

Cost-reducing

Efforts or strategies implemented to lower production expenses, improve efficiency, and increase profitability.