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The Seller of an Option Will Always __________ When the Option

Question 50

Multiple Choice

The seller of an option will always __________ when the option is exercised,so:


A) lose;the buyer of an option pays a premium to the seller of the option as compensation for the risk of loss that the option seller takes.
B) lose;the seller of an option will also have an option to get out of the option contract.
C) profit;the cost of options is very low.
D) profit;the seller of the option will agree to share the profit with the buyer of the option.

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