The seller of an option contract is called a (n) ____________ and the price paid for the option itself is the called the ___________.
A) option broker, option price
B) sales agent, option premium
C) option writer, option premium
D) option writer, option price

Question

Quizplus · Accepted Answer

The seller of an option contract is known as the option writer, and the price paid for the option is referred to as the option premium. Therefore, option writer and option premium are the correct terms to use to fill in the blanks. Choice A and B are not correct as they do not use the correct terms. Choice D is incorrect as it uses the term "option price" instead of "option premium".

The Seller of an Option Contract Is Called a (N)