Trader who purchases a call option


Which of the following isn't the credit risk faced by a trader who purchases a call option?

(a) The risk that the option writer has liquidity problems.

(b) The risk that the option writer declares bankruptcy before maturity.

(c) The risk that the option writer is not able to return the premium paid.

(d) The risk that underlying stock price goes below the strike price.

(e) None of the above.

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Mathematics: Trader who purchases a call option
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