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To originate and sell an option contract. The writer of an option contract must sell (in a call) or buy (in a put) the underlying asset of the contract if the holder exercises the option.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
The sale of an option in an opening transaction. The option writer incurs a potential obligation to buy (if a put is written) or to sell (if a call is written) an asset at a particular price.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.