A Writer of a Call Can Terminate the Contract Before

question 33

Multiple Choice

A writer of a call can terminate the contract before expiration by:

• A) writing a second call.
• B) buying a put.
• C) buying a comparable call.
• D) writing a put.

---

Definitions:

Overproducing

Overproducing is the act of producing more of a product than is demanded in the market, leading to surplus inventory and potential waste or decreased prices.

Product Markets

Markets where goods and services produced by businesses are sold to households and other businesses.

Optimal Level

The most efficient, effective, or desirable point or state for a specific goal or condition, often in economic and operational contexts.

Market Supply Curve

Represents the total quantity of a good or service that all producers in a market are willing to sell at different price levels, at a given time.