The Seller of an Option Will Always __________ When the Option

question 49

Multiple Choice

The seller of an option will always __________ when the option is exercised,so:

• A)lose;the buyer of an option pays a premium to the seller of the option as compensation for the risk of loss that the option seller takes.
• B)lose;the seller of an option will also have an option to get out of the option contract.
• C)profit;the cost of options is very low.
• D)profit;the seller of the option will agree to share the profit with the buyer of the option.

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Definitions:

Language

Our spoken, written, or signed words and the ways we combine them to communicate meaning.

Grammar

The set of structural rules governing the composition of clauses, phrases, and words in any given natural language.

Morphemes

The smallest grammatical units of language that have semantic meaning, including roots, prefixes, and suffixes.

Semantics

The branch of linguistics and logic concerned with meaning, including the relations between signifiers like words, phrases, signs, and symbols and what they stand for.