A Writer of a Call Option Will Want the Value

question 67

Multiple Choice

A writer of a call option will want the value of the underlying asset to ________, and a buyer of a put option will want the value of the underlying asset to ________.

• A) decrease; decrease
• B) decrease; increase
• C) increase; decrease
• D) increase; increase

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Definitions:

Job Specifications

Defined as the precise requirements and qualifications needed to perform a specific job, including duties, responsibilities, skills, and qualifications.

Job Analysis

The process of studying and collecting information about the duties, responsibilities, necessary skills, outcomes, and work environment of a particular job.

Strategic Approach

A planned method of action designed to achieve long-term goals or overall objectives.

Maximum Impact

The greatest possible effect or influence that an action, decision, or event can have on a situation or organization.