Which of the Following Has the Obligation to Purchase Stock

question 62

Multiple Choice

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

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

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Definitions:

Solids

Substances with a definite shape and volume, characterized by strong intermolecular forces and low kinetic energy among particles.

Liquids

A state of matter that has a definite volume but no fixed shape, and flows readily to conform to the shape of its container.

Covalent Bonds

A type of chemical bond where atoms share pairs of electrons.

Electrons

Subatomic particles with a negative electric charge, found in all atoms and acting as the primary carrier of electricity in solids.