A Writer of a Call Option Will Want the Value

question 67

Multiple Choice

A writer of a call option will want the value of the underlying asset to ________, and a buyer of a put option will want the value of the underlying asset to ________.

• A) decrease; decrease
• B) decrease; increase
• C) increase; decrease
• D) increase; increase

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Definitions:

Responsibility

The obligation to perform duties or tasks correctly and being accountable for the outcomes.

Stable Workforce

A stable workforce refers to a work environment where the number of employees and their job roles remain constant over time, minimizing turnover and fostering consistent productivity and organizational knowledge.

Higher Wages

Increased compensation paid to workers, usually as a result of economic policies, bargaining agreements, or market conditions, leading to improved living standards.

Follow Demand

A strategy where production levels are adjusted in response to changes in market demand.