The Seller of an Option Contract Is Called a (N)

question 144

Multiple Choice

The seller of an option contract is called a (n) ____________ and the price paid for the option itself is the called the ___________.

• A)option broker, option price
• B)sales agent, option premium
• C)option writer, option premium
• D)option writer, option price
• E)none of the above.

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Definitions:

Accrued Interest

Interest that has been incurred but not yet paid or received, often associated with bonds and loans.

Short-term Investments

Financial instruments or securities that are expected to be sold or converted into cash typically within a year or less.

Long-term Investments

Investments in other companies, real estate, or securities that a company intends to hold for more than one fiscal year.

Cash Invest

The process of committing money or capital to an endeavor with the expectation of obtaining an additional income or profit.