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The seller of an option will always __________ when the option is exercised, so: a lose; the buyer of an option pays a premium to
The seller of an option will always __________ when the option is exercised, so:
a | lose; the buyer of an option pays a premium to the seller of the option as compensation for the risk of loss that the option seller takes. | |
b | lose; the seller of an option will also have an option to get out of the option contract. | |
c | profit; the cost of options is very low. | |
d | profit; the seller of the option will agree to share the profit with the buyer of the option. |
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