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The Writer of a Put or Call Is the

Question 10

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 agrees to buy or sell the underlying stock if the option holder chooses to exercise the option.
D) party who guarantees that the terms of the option will be satisfied.

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