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Examveda

An investor who buys shares and writes a call option on stock is classified as

A. put investor

B. call investor

C. hedger

D. volatile hedge

Answer: Option C

Solution(By Examveda Team)

An investor who buys shares and writes a call option on stock is classified as hedger. A commercial hedger is an organization which uses futures contracts to lock in the price of specific commodities it uses in running its business.

This Question Belongs to Commerce >> Financial Management

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