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Writing options

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One reason that writing options can be a viable and profitable investment strategy is that

a. the option writer collects the quarterly dividends.
b. an option writer can exercise the option to avoid a potential loss.
c. an option writer determines when the option is exercised.
d. most options expire unexercised.

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Response provides the guidance related to writing options.

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The attraction of option writing to some investors is the opportunity to receive the premium that the option buyers pay. An option buyer anticipates that a change in the option's underlying ...

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