As the Seller of an Option, You Receive The

question 22

Multiple Choice

As the seller of an option, you receive the:

• A) exercise price.
• B) strike price.
• C) risk premium.
• D) option premium.

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Definitions:

International Companies

Businesses that operate across national borders, engaging in international trade or services.

U.S. Standards

Refers to the guidelines, principles, and procedures established in the United States for various activities, including accounting, manufacturing, and other industries.

GAAP

The standardized guidelines for accounting and financial reporting, providing transparency and consistency across financial statements and industries.

FASB

Financial Accounting Standards Board, an independent organization responsible for establishing accounting and financial reporting standards.