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7 March, 02:44

A customer with a long option position sells an option in the same series. This is referred to as a: (A) Opening sale (B) Opening purchase (C) Closing sale (D) Closing purchase

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  1. 7 March, 04:56
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    Opening purchase

    Explanation:

    This happens when a buyer buys a stock or security with the aim of sustaining or increasing the long position in the stock market.

    Buy to open informs the participant about the opening of new market rather than closing out on the old market. This remains open until an opposition trade takes place.

    It is good to also note that a position can be open and close within a very short period.
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