SIE practice questionmediumOptions expiration
If an option expires worthless, the seller’s result is:
- AGain of the premium received✓ Correct answer
- BObligated to buy shares at the strike
- CReturn of the premium to the buyer
- DBoth buyer and seller break even
Explanation
Why A — Gain of the premium received
The seller keeps the premium if the contract expires unexercised. No obligation is incurred.
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