The Price That the Writer of a Put Option Receives

question 62

Multiple Choice

The price that the writer of a put option receives to sell the option is called the

• A) premium.
• B) exercise price.
• C) execution price.
• D) acquisition price.
• E) strike price.

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Definitions:

Parametric Statistics

A branch of statistics that assumes data comes from a type of distribution and makes inferences about the parameters of the distribution.

Sample Size

The number of observations or data points used in a study or analysis.

Population

All the possible subjects or cases of interest.

Critical Value

A threshold in a statistical test that defines the boundary for whether a statistic is considered significant or not, helping decide to accept or reject the null hypothesis.