Multiple Choice
The seller of a put option is transferring the risk:
A) Of a price decrease of the stock to the buyer of the option.
B) Of a price increase of the stock to the buyer of the option.
C) This statement is incorrect since options do not transfer risk.
D) This statement is incorrect since only sellers of call options are transferring risk.
Correct Answer:
Verified
Correct Answer:
Verified
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