An Option Seller Can Avoid a Loss by Choosing Not

question 68

True/False

An option seller can avoid a loss by choosing not to exercise the option.

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Definitions:

Current Demand

The existing desire or need for a product or service within a market at a specific point in time.

Complements

Goods or services that are used together, where an increase in the consumption of one leads to an increase in the consumption of the other.

Supply Curve

The Supply Curve is a graphical representation showing the relationship between the price of a good or service and the quantity of that good or service that suppliers are willing and able to provide, typically upward sloping.

Change In Supply

A shift in the quantity of a good that producers are willing and able to sell at various prices, due to factors other than the price of the good itself.