The ________ side of an options contract has the option to exercise,while the ________ side has an obligation to fulfill the contract.
A) long, long
B)short,long
C)long,short
D)short,short
E)short,other

Question

The ________ side of an options contract has the option to exercise,while the ________ side has an obligation to fulfill the contract. 
A) long, long
B)short,long
C)long,short
D)short,short
E)short,other

Quizplus · Accepted Answer

The buyer of an options contract is called the long side, as they have the option to exercise or not. The seller of the options contract is called the short side, as they have an obligation to fulfill the contract if the buyer decides to exercise. Therefore, the correct answer is "long, short".

The ________ Side of an Options Contract Has the Option