The Writer of a Put or Call Is the

question 125

Multiple Choice

The writer of a put or call is the

• A)the institution that brings buyers and sellers of an option together in a transaction.
• B)can limit risk by letting the option expire unexercised.
• C)party who creates an option by selling it.
• D)party who guarantees that the terms of the option will be satisfied.

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Definitions:

α

Often represents the level of significance in statistical tests, marking the probability threshold below which the null hypothesis is rejected.

Degrees of Freedom

The quantity of independent variables or measures that can change during the computation of a statistic.

T Distribution

A probability distribution used in statistics that arises when estimating the mean of a normally distributed population in situations where the sample size is small and population standard deviation is unknown.

Sample Size

The number of observations or data points that are used in a statistical sample.