Sellers (Writers) of Call Options Can Offset Their Position at Any

question 55

Multiple Choice

Sellers (writers) of call options can offset their position at any point in time by

• A) selling a put option on the same stock.
• B) buying identical call options.
• C) selling additional call options on the same stock.
• D) all of the above
• E) A and B

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Definitions:

Mutual Gains Bargaining

A negotiation approach where all parties aim to achieve benefits and fulfill interests, promoting positive outcomes for all.

Distributive Bargaining

A negotiation strategy where two or more parties vie for the distribution of a fixed asset or resource, often resulting in a win-lose outcome.

Labor Unions

Organizations formed by workers to protect their collective interests, rights, and working conditions.

Concessions

Compromises made by one party in negotiations, typically involving relinquishing certain demands to reach an agreement.