Concerning whether an option is exercised, the writer of the option has:
ANo choice
BTwo choices
CThree choices
DFull choice
Answer & Solution
Correct answer: A. No choice
1. The buyer holds the right to decide.
2. The writer has already been paid for that right.
3. So the writer has no choice.
_Source: OpenStax Principles of Finance 2e, Chapter 20, Risk Management and the Financial Manager._
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