Q649
An investor who buys shares and writes a call option on stock is classified as
A.
put investor
B.
call investor
C.
hedger
AnswerD.
volatile hedge
Answer: Option C
Solution
Answer: Option C
Solution:
An investor who buys shares and writes a call option on stock is classified as hedger. A commercial hedger is an organization which uses futures contracts to lock in the price of specific commodities it uses in running its business.