Which of the Following Has the Obligation to Sell a Stock

question 1

Multiple Choice

Which of the following has the obligation to sell a stock at the strike price when an option is exercised?

• A)call holder
• B)call writer
• C)put holder
• D)put writer
• E)call holder and put writer

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Definitions:

Initial Investment

The amount of money used to start a new project, purchase an asset, or invest in the market at the initiation phase.

Payback Period

The amount of time it takes to recover the cost of an investment, calculating how long it will take to break even from the initial expenditures.

Net Cash Inflows

The total amount of money received minus money spent over a certain period, often used in evaluating project profitability.

Remodeling Expenses

Costs incurred for updating or renovating a property to increase its value or utility.