is my answer correct? An investor who sells options will: O control of the under

Question

is my answer correct?

An investor who sells options will: O control of the underlying asset until expiration of the option O Benefit from wide swings in the underlying asset Benefit from collecting premium and benefit from gaining (and possibly afterward) Incur the expense of a premium in exchange for control of the underlying asset until expiration of the option (and possibly afterward) Benefit from collecting premium at the expense of losing control of the underlying asset until expiration of the option (and possibly afterward)

Explanation / Answer

Yes your answer is correct.

An investor who sells options will receive premium and he will loss control of the underlying asset until expiration of the option.

Means the exercise of the option depends on the buyer of the option. If the option lapse the seller will is beneficial ( premium received ) if the buyer exercise option then the seller need to pay difference amount.

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