Which of the following describes a short put option? The obligation to sell an asset for a certain price The obligation to buy an asset for a certain price The right to sell an asset for a certain price The right to buy an asset for a certain price

The potential loss incurred from purchasing a call option is finite, but the potential loss to the seller is unbounded.  Explain why the potential loss that the seller may occur is unbouned.

Compare the way a purchase option that is reasonably certain to be exercised and a lessee-guaranteed residual value are treated by the lessee and lessor when determining lease payments.

The seller (or the writer) of a call option: may have the obligation to sell the underlying asset at a strike price until an expiration date may have the obligation to buy the underlying asset at a strike price until an expiration date has the right to sell the underlying asset at a strike price until an expiration date has the right to buy the underlying asset at a strike price until an expiration date None of these answers are correct.