One Reason That Writing Options Can Be a Viable and Profitable

question 124

Multiple Choice

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

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

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Definitions:

UCLA

The University of California, Los Angeles, a public research university located in the Westwood district of Los Angeles, California.

USC

A shortened reference to the University of Southern California, a major research university located in Los Angeles, known for its academic and athletic programs.

Economics

The social science that studies how individuals, groups, and nations manage and use resources, including the production, distribution, and consumption of goods and services.

Sport

An activity involving physical exertion and skill, often competitive in nature, and aimed at maintaining physical ability and entertainment.