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Ratio writer |
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Ratio writerAn option writer who does not own the number of shares required to cover the call options he or she writes.Ratio writer Similar MatchesOption writerOption writerSee: Option seller UnderwriterUnderwriterA firm, usually an investment bank, that buys an issue of securities from a company and resells it to investors. In general, A party that guarantees the proceeds to the firm from a security sale, thereby in effect taking ownership of the securities. Managing underwriterManaging underwriterThe leading firm in an underwriting group, which originates the deal and acts as an agent for the group. Option writerOption writerThe initial 'seller' of an option. He has to fulfil the terms of the option contract if the holder choose to exercise it. So if the holder exercises a call option to buy some shares, the option writer has to deliver the shares. Note that the option writer has an obligation, but no rights. It is not up to him whether the option is exercised. WriterWriterA person who makes an opening sale of an option contract. Upon notification of exercise by the option holder (the buyer), the writer is obliged to deliver or take delivery of the underlying instrument (for example, shares, commodities etc). Further SuggestionsCovered writerunderwriter Underwriters discount Naked writer Lead underwriter |
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