Question: What exactly difference between Short Position and Long position in Asset? Difference Long Call and Short Call? also Long Put and Short Put?

What exactly difference between Short Position and Long position in Asset?

Difference Long Call and Short Call? also Long Put and Short Put?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Q:

The following three tables make up a simple reservation system for a small campground. The database should allow for a camper to make multiple reservations for future dates and for a camping spot to...

Q:

0 / 10 pts Incorrect Question 2 One of the analysts covering Facebook says that the short term outlook of Facebook is not promising and suggests that FB is bound to go down. If you are deciding to...

Q:

FIN 421 Investments-Chapter 18 Homework Questions: 6. You expect the price of a stock to decline but do not want to sell the stock short and run the risk that the price of the stock may rise...

Q:

Here are three queswtion 6,7,9 needs to be answers, the rest of them the info for each questions are in order, there !is no missing information!, please read everything, the question is complete....

Q:

I screenshot everything and put them in order, please complete every little boxes. the others are the info provided for it. Problems: Nondirection Dependent Strategies -- Straddles and Strangles...

Q:

A Canadian bank has sold the following portfolio of over-the-counter options on U.S. dollars: Type Call Call Put Put Position -250 -500 -700 -300 Delta 0.50 0.80 -0.40 -0.70 Gamma 2.2 0.6 1.3 1.8...

Q:

2. a. b. c. Draw a payoff diagram for an investor with (i) a long position in a European put; and (ii) a short position in a European call A 6-month European call option written on the stock of...

Q:

In a market, a share is traded at a spot price of SEK 803.20. Furthermore, the following call and put options are issued on the share, all with a term of one year: Call option 1 has an exercise price...

Q:

a)Explain the difference between a long position in a call and a short position in a put. b)A trader sells a call option with a strike price of $45 for $6. What is the trader's maximum gain and...

Q:

Please give me reason for each answer. Thanks. Tim Petrovich is the portfolio manager of fixed income securities at Gamma Bank. Petrovich is concerned about the performance of the bank's corporate...

Q:

13. Assume an investor shorts a strangle, which of the following statements is correct? a. The investor will only benefit from significant price movements on either side b. The investor will only...

Q:

1. Determine whether the proposition "A Nash is always Pareto efficient" is true and equilibrium explain it. 2. Suppose players 1 and 2 play rock, paper, scissors. Answer the following questions. a....

Q:

A 972-g meteor impacts the earth at a speed of 1.610 m/s.f all of its energy is entirely converted to heat in the meteor, what will be the resulting temperature rise of the meteor, assuming it does...

Q:

Which of these situations would follow the general rule for basis of inherited property? Julisa died on April 1 8 , 2 0 2 4 , leaving her house to her sister, Sloan. Lars died on July 3 0 , 2 0 2 4 ....

Q:

The following balances for 29 February 2020 were taken from the books of Harry ltd. company that manufactures toys: Additional information: 1. The patents were obtained on 1 March 2013 at R45 000, R4...

Q:

Hux (60) and El(45) started the process of adopting Elwood (15) on May 1, 2020. On July 6, 2020 Hux took $5000 distribution from his 401K. On Sept 24, 2020, El took a $5000 distribution from her IRA....

Q:

Employees from Company A and Company B both receive annual bonuses. What information would you need to test the claim that the difference in annual bonuses is greater than $100 at the 0.05 level of...

Q:

Given the survival function S 0 (x)=exp(-0.001 x 2 ), x 0, find p 20 .

Q:

A company's annual cost of equity is 10 pret p of $300 million in equity a OA) 6.0% OB) 6.5 % OC) 7.5% OD) 10.0% deb weighted averag Which of the following is a potential use of blockchain...

Q:

3. An initial value (anchoring).

Q:

4. Similarity (representativeness).

Q:

2. In this chapter, the reader should reflect on the following concepts: Idealized system design, analogue thinking, contrast principle, consistency principle, reciprocity principle, scarcity...