Consider a Call Option; in Terms of the Option Writer

question 82

Essay

Consider a call option; in terms of the option writer and option holder, who is the buyer? Who is the seller? Finally, who has the option? Explain.

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Definitions:

Proprietary Name

A brand name given by the manufacturer to a product, especially a drug, under which it is marketed and sold.

Chemical Name

The precise name of a chemical as determined by its molecular structure and nomenclature standards.

Generic Name

The non-branded name of a medication, usually derived from its chemical name and not protected by trademark.

Diuretic

A type of medication or substance that promotes the excretion of urine, used to treat conditions like hypertension.