INVESTMENTS (LOOSELEAF) W/CONNECT
INVESTMENTS (LOOSELEAF) W/CONNECT
11th Edition
ISBN: 9781260465945
Author: Bodie
Publisher: MCG
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Chapter 2, Problem 21PS
Summary Introduction

To determine: The difference between the put option and the short position.

Introduction:

The put option is a contract in which the holder has the right to sell the underlying asset. The call option is a type of the option contract. The ‘option contract’ is of two types − call option and put option.

The future contract is based is on the two types of position which are long position and the short position. In this holder of the long position can buy asset from the short position at the cost of future price.

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