i know the difference between put and call options, but unsure about the long/sh
ID: 2821348 • Letter: I
Question
i know the difference between put and call options, but unsure about the long/short call vs long/short put. are my answers correct?+ what is the exact definition for long/short put/call ?
Thank you.
What options position is associated with a. The right to buy an asset at a specified price? O Short put O Short call Long call O Long put b. The right to sell an asset at a specified price? Long put O Short put O Long call O Short call c. The obligation to buy an asset at a specified price? short call O Short put O Long call O Long put d. The obligation to sell an asset at a specified price? O Long call Short put O Short call O Long putExplanation / Answer
Note : Long a call = Buy a call option (Right to buy)
Soft a call option = Sale a call option (Obligation to sale) in this case we have position of saller of call.
Long a put = Buy a put option (Right to sale)
Sort a put = Sale of put option (We have obligation to buy) in this case we have position of saller of put option.
Answer a) Long call
Answer b) Long put
answer c) sort put
answer d) Sort call
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