The price that the writer of a call option receives to sell the option is called the
A) strike price.
B) exercise price.
C) execution price.
D) acquisition price.
E) premium.

Question

Quizplus · Accepted Answer

The price received by the writer (seller) of a call option for selling the option is known as the premium. This is the income the seller earns for taking on the obligation to sell the underlying asset at the strike price if the option is exercised by the buyer.

The Price That the Writer of a Call Option Receives