The seller of an option has the ________ to buy or sell the underlying asset,while the purchaser of an option has the ________ to buy or sell the asset.
A) obligation; right
B) right; obligation
C) obligation; obligation
D) right; right

Question

Quizplus · Accepted Answer

The seller (writer) of an option contract has the obligation to buy or sell the underlying asset if the buyer decides to exercise the option, while the purchaser of the option has the right, but not the obligation, to buy or sell the asset.

The Seller of an Option Has the ________ to Buy