The Seller of an Option Contract Is Called a (N)

question 132

Multiple Choice

The seller of an option contract is called a (n) ____________ and the purchaser of the option itself is the called the ___________.

• A) option broker, option price
• B) sales agent, call option
• C) sales agent, option premium
• D) option writer, option buyer
• E) none of the above

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Definitions:

Country

A nation with its own government, occupying a particular territory.

Repair

The action of fixing or restoring something that is damaged or deteriorated to a functional or useful state.

Agency Relationships

A legal relationship in which one party (the agent) acts on behalf of another party (the principal) in dealings with third parties.

Third Party

An entity not directly involved in a transaction or agreement but may be affected by it or have an interest in its outcome.