Assuming an investor writes a put option, he need not pay the brokerage because he is actually
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Assuming an investor writes a put option, he need not pay the brokerage because he is actually selling an option. Which of the following statements justifies that the above context is true or false?
a. True—since the investor receives a premium amount, he should receive the brokerage
b. False—the investor has to pay the commission to the exchange
c. True—because there are no brokers in between, no brokerage has to be paid
d. False—since the trade is exercised through a broker, the investor has to pay the commission
e. None of the above
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Related Book For
Accounting For Investments Equities Futures And Options Volume 1
ISBN: 9780470824313
1st Edition
Authors: R. Venkata Subramani
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