Using an option contract to buy or sell the underlying asset is called ________ the option.
A) Writing
B) Exercising
C) Making
D) Converting
E) Maturing

Question

Quizplus · Accepted Answer

Exercising the option refers to the act of using the option contract to buy or sell the underlying asset. Writing an option refers to selling or creating an option contract. Making an option is not a commonly used term in options trading. Converting and maturing are not applicable to options contracts.

Using an Option Contract to Buy or Sell the Underlying