The act of selling a covered or naked option by someone, whether an individual or institution, to the effect that the buyer is being delivered a specified amount of the underlying upon exercise. The option writer is obligated to deliver the underlying if the buyer demands so. In turn, the buyer has the option to take delivery or to walk away against a specified premium.
Derivatives
Derivatives have increasingly become very important tools in finance over the last three decades. Many different types of derivatives are now traded actively on ...
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