首页 | 学习中心 | 注册 登录
返回列表 发帖
Beatnik

Rank: 2

UID
223306 
帖子
226 
主题
116 
注册时间
2011-7-11 
最后登录
2013-8-22 
1# 跳转到 » 倒序看帖
打印
tT
发表于 2013-4-28 12:46 | 只看该作者

Portfolio Mgmt question

number, exercise, long, correct, question
Pierre just purchased a call option on shares of the Michelin Group. A few days ago he wrote a put option on Michelin shares. The call and put options have teh same exercise price, expiration date, and number of shares underlying. Considering both positions, Pierre’s exposure to the risk of the stock of the Michelin Group is:
long, short or neutral?
I thought it was neutral since he is long call and short put but the correct answer is long. I read the explanation at the back and am now even more confused. Can someone please exlpain the logic behind this? Thanks
收藏 分享

ayaz_mahmud369

Rank: 2

UID
223412 
帖子
334 
主题
15 
注册时间
2011-7-11 
最后登录
2014-8-7 
2#
发表于 2013-4-28 12:46 | 只看该作者
When you go long a call you are long : You expect the stock to go up so that you can buy it at a lower price (the exercise)
When you go short a put you again are long : You are giving somebody else the option to sell you the stock at a higher price (a.k.a he is expecting the stock to fall). If you think that the price is going UP then you are going to short (write) a put because you expect the put to expire out of the money hence gaining the premium.

TOP

Windjammer

Rank: 2

UID
222305 
帖子
379 
主题
21 
注册时间
2011-7-2 
最后登录
2015-12-5 
3#
发表于 2013-4-28 12:46 | 只看该作者
ahh now i get it. thanks!

TOP

pennyless

Rank: 2

UID
222326 
帖子
285 
主题
15 
注册时间
2011-7-2 
最后登录
2015-1-30 
4#
发表于 2013-4-28 12:46 | 只看该作者
Remember this:
Type of option………………Option position…………….Exposure to underline Risk
        Call………………………………..Long……………………………..Long
        Call………………………………..Short…………………………….Short
         Put………………………………….Long……………………………Short
         Put………………………………….Short……………………………Long

TOP

YAhmed

Rank: 2

UID
223437 
帖子
336 
主题
5 
注册时间
2011-7-11 
最后登录
2016-4-19 
5#
发表于 2013-4-28 12:47 | 只看该作者
Or just draw the graphs. :-)

TOP

返回列表