Consider a Call Option; in Terms of the Option Writer

question 82

Essay

Consider a call option; in terms of the option writer and option holder, who is the buyer? Who is the seller? Finally, who has the option? Explain.

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Definitions:

Contract Avoidance

A legal strategy or action taken to nullify or declare a contract unenforceable to prevent legal obligations or liabilities.

Undue Influence

The use of excessive pressure or manipulation by one party over another to induce action or decision-making that is not fully voluntary.

Properly Sealed

Ensured that an item or document is closed or fastened securely, often implying it has been authenticated or officially completed.

Mistake Of Fact

Mistake as to the existence of the subject matter of a contract or the identity of a party.