"An option gives the firm the right (but not the obligation) to buy or sell
an asset in the future at a price that is agreed upon today. We have
already seen that the firm sometimes issues options either on their own or
tacked on to other securities. But, in addition, there is a huge volume of
dealing in options that are created by specialized options exchangies.
Trading in stock options took off in 1973 when the Chicago Board Options
Exchange was established. Now you can deal in options to buy or sell
common stocks, bonds, currencies, and commodities. We describe options and
their applications in Chapters 20 and 21."
The Hodges and D'ambrosio study guide chapter 14, problem 7c is a
true/false question:
"A traded option is not issued by the company whose shares can be bought or
sold using it."
I am wondering what your answer may be here.