The ________ side of an options contract has the option to exercise, while the ________ side has an obligation to fulfil the contract.
A)long, short
B)short, long
C)short, short
D)long, long

Question

Quizplus · Accepted Answer

The buyer or holder of an options contract is known as the long side. The long side has the right but not the obligation to exercise the option. The seller or writer of an options contract is known as the short side. The short side has the obligation to fulfill the terms of the contract if the long side chooses to exercise the option. Therefore, the correct answer is A) long, short.

The ________ Side of an Options Contract Has the Option