Q664
Type of options that do not have stock in portfolio to back up options is classified as
A.
undue options
B.
due options
C.
naked options
AnswerD.
total options
Answer: Option C
Solution
Answer: Option C
Solution:
Type of options that do not have stock in portfolio to back up options is classified as naked options. Naked option refers to an option contract which does not comprise ownership of the underlying security by the purchasing or selling party.