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Option contract

This topic has 1 reply, 2 voices, and was last updated 3 years ago by John Moffat.

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July 14, 2021 at 5:17 pm #627736
Christie9693
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How do we differentiate the holder and writer of the option contract?
July 15, 2021 at 7:06 am #627798
John Moffat
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The holder is the person who bought the option and therefore has the right to exercise it if they want to.
The writer is the person who sold the option and has to pay out if the holder decides to exercise it.
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