Selling an Option Is Called

question 133

Multiple Choice

Selling an option is called

• A) option initiation
• B) exercising
• C) writing a straddle
• D) option writing
• E) option spotting

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Definitions:

Average Total Costs

The total costs of production (fixed and variable) divided by the quantity of output produced.

Total Fixed Costs

The sum of all costs that do not change with the level of production or services provided, such as rent and salaries.

Average Variable Cost

The total variable cost of producing a good divided by the quantity of the good produced, representing the variable cost per unit.

Average Total Costs

The total costs of production (fixed plus variable) divided by the total quantity of output produced, expressing the cost on a per-unit basis.