Question
When a trader writes a cash-settled call option, they agree to pay their counterparty Max(0, ST - K) at option maturity. Thus the trader never
When a trader writes a cash-settled call option, they agree to pay their counterparty Max(0, ST - K) at option maturity. Thus the trader never expects to receive a payment and may have to make a payment. Thus, the best the trader can ever do is to pay nothing. Why would the trader every agree to such an arrangement?
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Which Crypto Currency Should I Buy Make Finding And Investing In New Crypto Currencies Fun Easy And Profitable
Authors: Lisa Phillips
1st Edition
1732644586, 978-1732644588
