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:

Indorsed

Refers to the act of signing one's name on the back of a check, contract, or other document to validate it or agree to its terms.

Special Indorsement

A type of signature on a negotiable instrument that specifies the person to whom the instrument is endorsed.

Indorser

A person who signs a document, typically a negotiable instrument, endorsing it to another party, thereby transferring ownership or confirming its validity.

Holder In Due Course

A legal status given to a person who has acquired a negotiable instrument in good faith and for value, affording them certain rights free of defenses.