Contingent liability on written options
The disclosure an option writer makes for the probable commitment to pay for goods (put writing) or deliver goods (call writing), while the premium income itself is recognised immediately in profit and loss.
This one is not written up yet
The definition above is the short version. A full explanation — how it works, a worked example and the exam traps — is still being written. In the meantime the chapter below covers it in context.
Written up from the same chapter
Where this is taught
Free preparation for NISM Series XVI← All terms