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Derivatives

  Derivatives   |   Terms
  • 354
  • February 20, 2023
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Writer

A trader or investor who sells a covered or naked option 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 (option price).


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