Chapter 02 · Section 2.1

The exercise price - Q1

The exercise price is the price at which:

a) the call writer may buy the underlying asset or the call writer may sell the underlying asset.
• b) the call holder may buy the underlying asset or the put holder may sell the underlying asset.
  Yes. The option holder has the right - not the obligation - to buy (call option) or sell (put option) the underlying asset at the exercise price. Continue
  c) the call writer may buy the underlying asset or the put holder may sell the underlying asset.

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