4 ms·
However a put must have an underwriter who must take the risk that it goes to zero
by imranq 9y ago
However a put must have an underwriter who must take the risk that it goes to zero
- pzs 9y agoTrue, yet the downside is still limited. The worst case for the option seller (or writer) is that she has to buy an asset valued at zero for the pre-agreed strike price. That puts a cap on her loss.