Writing Options. Why would anyone write an option, knowing that the gain from receiving the option premium

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Writing Options. Why would anyone write an option, knowing that the gain from receiving the option premium is fixed but the loss, if the underlying price goes in the wrong direction, can be extremely large?

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Multinational Business Finance

ISBN: 9781292097879

14th Global Edition

Authors: David Eiteman, Arthur Stonehill, Michael Moffett

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Question Posted: Jun 04, 2024 01:02 AM

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Writing Options. Why would anyone write an option, knowing that the gain from receiving the option premium is fixed but the loss, if the underlying price goes in the wrong direction, can be extremely...
Why would anyone write an option, knowing that the gain from receiving the option premium is fixed, but the loss, if the underlying price goes in the wrong direction, can be extremely large?
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Writing Options. Why would anyone write an option, knowing that the gain from receiving the option premium

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Multinational Business Finance

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