One reason that writing options can be a viable and profitable investment strategy is that
A) the option writer collects the quarterly dividends.
B) many 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.

Question

Quizplus · Accepted Answer

Many options expire unexercised, allowing the writer to keep the premium received from selling the option as profit without having to fulfill the contract.

One Reason That Writing Options Can Be a Viable and Profitable