One Reason That Writing Options Can Be a Viable and Profitable

question 61

Multiple Choice

One reason that writing options can be a viable and profitable investment strategy is that

• A)the option writer collects the quarterly dividends.
• B)most options expire unexercised.
• C)an option writer determines when the option is exercised.
• D)an option writer can exercise the option to avoid a potential loss.

Determine the effective rate of interest for different compounding periods.

Analyze and compare different interest rates to make informed financial decisions.

Comprehend the impact of changes in periodic interest rates on the effective annual rate.

Calculate and understand the equivalent interest rates for various compounding frequencies.

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