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Author Question: What position has more downside exposure: a short position in a call option or a short-position in a ... (Read 368 times)

shofmannx20

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on: Apr 25, 2021

Question 1




The table above shows prices of put options on shares of Dunder-Mifflin Paper. What is the time premium of the March put option on Dunder-Mifflin shares with the $16 exercise price? The stock is currently trading for $18.50.
◦ $0
◦ $0.50
◦ $0.75
◦ $1.25

Question 2

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.
Corporate Finance Online ¦ Eakins, McNally ¦ 2nd Edition
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Marked as best answer by shofmannx20 on Apr 25, 2021

guyanai

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Reply #1 on: Apr 25, 2021
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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shofmannx20

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Reply 2 on: Apr 25, 2021
Great answer, keep it coming :)

connor417

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

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