Question: What position has more downside exposure: a short position in a call or a short position in a put? That is, in the worst case,

What position has more downside exposure: a short position in a call or a short position in a put? That is, in the worst case, in which of these two positions would your losses be greater?

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Part 1

Downside exposure is larger with a

short put

short call

(the downside is unlimited) than with a

short call

short put

(the downside cannot be larger than the strike price).

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