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The writer of a call option receives the option price? (or premium) from the buyer.? However, the opposite is true for? puts: the writer pays the buyer.

User Tourniquet
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Final answer:

In options trading, the writer of a call option receives the option price from the buyer, while the writer of a put option pays the buyer.

Step-by-step explanation:

In options trading, the writer of a call option is the seller of the option and receives the option price or premium from the buyer. The writer is obligated to sell the underlying asset at the strike price if the buyer decides to exercise the option. On the other hand, for put options, the writer or seller of the put option is obligated to buy the underlying asset at the strike price if the buyer exercises the option. Therefore, the writer of a put option pays the buyer.

User Yogurt
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