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Webster's New World Finance and Investment Dictionary » option writer
option writer
option writer definition - finance
A
person who writes, or sells, an option contract in order to earn the premium,
which is the fee that the purchaser pays the writer. A writer of a call option
promises to sell the underlying investment to the call purchaser, who has
bought the right to purchase it at a specific price. A writer of a put option
has promised to buy the underlying investment from the put buyer, who has
bought the right to sell the investment at a specific price.
Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.
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