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anushaz06 anushaz06
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3 years ago
What position has more downside exposure: a short position in a call option or a short-position in a put option on the same stock? In other words, if the worst outcome occurred for each option, which would lose more money?

▸ Short call

▸ Short put

▸ Both lose an equal amount of money.

▸ It depends on the premiums of the two options.
Textbook 
Corporate Finance Online

Corporate Finance Online


Edition: 2nd
Authors:
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finsterchuckfinsterchuck
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3 years ago
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anushaz06 Author
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3 years ago
You make an excellent tutor!
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Thanks for your help!!
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