The Writer or Seller of an Option Is Exposed to Greater

question 128

True/False

The writer or seller of an option is exposed to greater risk than the buyer of the option.

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Definitions:

Warehouse Clubs

Large retail stores, often requiring membership, that sell a variety of goods at discounted prices, usually in bulk or large quantities.

Sam's Club

A membership-only retail warehouse club owned and operated by Walmart Inc., offering a variety of merchandise and services.

Costco

A multinational corporation that operates a chain of membership-only warehouse clubs offering a wide selection of merchandise.

Hypermarkets

Large retail spaces combining a supermarket and a department store, offering a wide range of products under one roof.