Which One of the Following Option Traders Receive the Option

question 77

Multiple Choice

Which one of the following option traders receive the option premium?

• A) Option sellers
• B) Option buyers
• C) Both option sellers and buyers
• D)Neither buyers nor sellers receive premiums

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Definitions:

Depreciation

A structured approach to spreading out the cost of a solid asset over the period it is expected to be useful.

Variances

Differences between expected and actual performance in areas like budget, costs, and schedule in financial and project management.

Fixed Manufacturing Overhead

Costs associated with manufacturing that do not change regardless of the level of production, such as salaries of supervisors and rent for the factory.

Budgeted Activity

The level of operation or volume of work planned for a period, used in budgeting and planning processes.