​Which of the Following Is True of Options

question 24

Multiple Choice

​Which of the following is true of options?

• A) ​The writer decides whether the option will be exercised.
• B) ​The writer pays the buyer the option premium.
• C) ​The buyer decides if the option will be exercised.
• D) ​More than one of these.

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Definitions:

Willingness

The readiness or inclination of people to engage in a particular action, such as purchasing a product or adopting a service.

Ability To Pay

A concept referring to an individual's or entity's capacity to cover a financial obligation, often considered in tax policy and healthcare.

Latex Gloves

Elastic gloves made from natural rubber latex, commonly used for protection in medical and industrial settings.

Quantity Demanded

The total amount of a good or service that consumers are willing to purchase at a given price over a specified period.