Session 17: Derivatives Reading 71: Option Markets and Contracts
LOS a: Describe call and put options.
Which of the following represents a long position in an option?
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B) |
Writing a call option. | |
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A long position is always the buying position. Remember that the buyer of an option is said to have gone long the position, while the writer (seller) of the option is said to have gone short the position. |