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The seller of an option who collects the premium payment from the
buyer, a very high risk position to be in.
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A
writer would hold a short position on a call option. If the call option
was exercised then the writer would have to sell the underlying stock
at whatever the strike price of the option was.
Conversely if you are the writer of a put option then you must purchase
the underlying stock at the particular price. Extremely risky.
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Dictionary
