The Maker of a Put or Call Is the

question 87

Multiple Choice

The maker of a put or call is the

• A) company which issued the underlying security.
• B) person who facilitates the trade on the floor of the exchange.
• C) party who writes the option.
• D) party who decides whether or not the option is exercised.

---

Definitions:

Subsidiaries

Companies controlled by a parent company through the ownership of more than half of their voting stock or through other means of control.

Available-for-Sale Securities

Debt or equity securities not classified as held-to-maturity or trading securities, measured at fair value, with changes in value recorded in other comprehensive income.

Fair Value

An estimate of the price at which an asset would trade in a fair transaction between willing market participants, reflecting its intrinsic value.

Year-end Adjustment

Financial adjustments made at the end of the accounting year to reflect accurate and up-to-date information in financial statements.