When a Bank sells a call option to an option buyer, the __________ of the option contract is shown as an ____________________ item in the books of the bank.

Question

When a Bank sells a call option to an option buyer, the __________ of the option contract is shown as an ____________________ item in the books of the bank.
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Solution 1

When a bank sells a call option to an option buyer, the "premium received" from the sale of the option contract is shown as an "income" item in the books of the bank.

Here's the step by step explanation:

  1. A call option is a financial contract that gives the option buyer the right, but not the o Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study prob
Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solv

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