Question
Which of the following statement is in INCORRECT? Select one: O a. Put writer or seller is willing to take risk of writing a put
Which of the following statement is in INCORRECT? Select one: O a. Put writer or seller is willing to take risk of writing a put option because he/she needs the income and he is willing to take the risk against a possible decline in stock price. O b. The functions of option clearing corporations are to serve as a middleman between buyers and sells and to guarantee contract performance by both buyers and sellers. O c. The objectives of call option buyer are to limit the downside risk and increase leverage. O d. The call option buyer should be bearish on the underlying stock, expecting the price to go up. O e. The call option writer should be bearish on the price of the underlying stock.
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