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WHO CAN WRITE AN OPTION?

Discuss WHO CAN WRITE AN OPTION? within the Financial Management ( FM ) forums, part of the Resolve Your Query - Get Help and discuss Projects category; Anyone eligible to enter into contract as per the Law of Contract can write an option irrespective of the fact ...

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WHO CAN WRITE AN OPTION?
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Sunanda K. Chavan
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WHO CAN WRITE AN OPTION? - October 8th, 2010

Anyone eligible to enter into contract as per the Law of Contract can write an option irrespective of the fact whether one owns the underlying stock or not.


If the writer of a call option owns the stock that he is obliged to deliver upon exercise of the call he has written, he is called a covered call writer.


On the other, if the writer of the call option does not own the stock he has written the option for, he is called an uncovered or naked call writer and the option is called an uncovered or naked call option.
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Rose Marry
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Re: WHO CAN WRITE AN OPTION? - April 15th, 2016

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Originally Posted by sunandaC View Post
Anyone eligible to enter into contract as per the Law of Contract can write an option irrespective of the fact whether one owns the underlying stock or not.


If the writer of a call option owns the stock that he is obliged to deliver upon exercise of the call he has written, he is called a covered call writer.


On the other, if the writer of the call option does not own the stock he has written the option for, he is called an uncovered or naked call writer and the option is called an uncovered or naked call option.
hey mate,

Well, i found Options Compared To Common Stocks and wanna share it with you and other's. So please download and check it.
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File Type: pdf Options Compared To Common Stocks.pdf (55.9 KB, 0 views)
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