CVA Exam Dumps | A seller who does not own a security (a short seller) will simply accept price of the security from the

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Question 229/251

A seller who does not own a security (a short seller) will simply accept price of the security from the buyer and agree to settle with the buyer on some future date by paying him an amount equal to the price of the security on that date. While this short sale is outstanding, the short seller will have the use, of, or interest on, the proceeds of the sale. This is the assumption of:

A. An option market

B. Volatile market

C. Market of underlying stock in an option trading

D. Near-perfect market

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Question 229/251

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