option writer
option writer Finance Definition
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.
Browse dictionary entries near option writer
- option price
- option clearing corporation
- option
- optimums
- optimum
- optimizing
- optimized
- optimize
- optimization
- optimistically
