Q.

The seller of an option has the

A. right to buy or sell the underlying asset.
B. the obligation to buy or sell the underlying asset.
C. ability to reduce transaction risk.
D. right to exchange one payment stream for another.
Answer» B. the obligation to buy or sell the underlying asset.
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Discussion

A

Anastasia
2 years ago

I do not agree with this answer. With options there is no obligation but right. So i think the answer should rather be A. right to buy or sell the underlying asset.
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