Options · Question 5 of 12

What does the buyer of an option pay to the seller?

1 answer is correct. Easy

Show answer

Answer

  • C The option premium

Explanation

For the option right, the buyer pays a price, the premium. The buyer's maximum loss is limited to this premium. The seller, the writer, receives the premium and takes on an obligation in return.

Certifications & exams

Which exam comes next?

You can already practise for 19 exams, and 21 are up for a vote. See all certifications with their official information, cast your vote or suggest your exam.

See all certifications