The price that the writer of a call option receives for the underlying asset if the buyer executes her option is called the
A)strike price.
B)exercise price.
C)execution price.
D)strike price or exercise price.

Question

Quizplus · Accepted Answer

The price that the writer of a call option receives for the underlying asset if the buyer executes her option is referred to as both the strike price and the exercise price, making both terms correct and interchangeable in this context.

The Price That the Writer of a Call Option Receives