Explain why you agree or disagree with this statement: Buying a put is just like short selling

Question:

Explain why you agree or disagree with this statement: "Buying a put is just like short selling the underlying asset. You gain the same thing from either position, if the underlying asset's price falls. If the price goes up, you have the same loss."

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Foundations Of Financial Markets And Institutions

ISBN: 9780136135319

4th Edition

Authors: Frank J Fabozzi, Franco G Modigliani, Frank J Jones

Question Posted: