Why does an investor who writes (shorts) an option have an obligation?

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Corporate Finance

ISBN: 9780132992473

3rd Edition

Authors: Jonathan Berk, Peter DeMarzo

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Question Posted: Mar 15, 2024 01:00 AM

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Why does an investor who writes (shorts) an option have an obligation?

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An investor who writes shorts an option assumes an obligation because they are selling the option contract to another party When an investor writes an ...View the full answer

Corporate Finance

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