A writer of a call can terminate that particular contract anytime before its expiration by:
A) writing a second call.
B) buying a put.
C) buying a comparable call.
D) writing a put.

Question

Quizplus · Accepted Answer

Buying a comparable call allows the writer to offset their position, effectively closing out the contract before its expiration. This is known as "buying to close."

A Writer of a Call Can Terminate That Particular Contract