Question: Explain the difference between a long position in a put and a short position in a call. ( Choose the best answer below. ) A

Explain the difference between a long position in a put and a short position in a call.

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Choose the best answer below.

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When a party has a long position in a put, it has the right to sell the underlying asset at the strike price; when it has a short position in a call, it has the right to buy the underlying asset at the strike price if exercised.

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When a party has a long position in a put, it has the right to sell the underlying asset at the strike price; when it has a short position in a call, it has the obligation to sell the underlying asset at the strike price if exercised.

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When a party has a long position in a put, it has the obligation to sell the underlying asset at the strike price; when it has a short position in a call, it has the obligation to buy the underlying asset at the strike if exercised.

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When a party has a long position in a put, it has the obligation to buy the underlying asset at the strike price; when it has a short position in a call, it has the right to sell the underlying asset at the strike price if exercised.

Explain the difference between a long position in a put and

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