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- 2011-7-11
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- 2014-7-7
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Hi
Hope somebody can help me with my question on options.
Ok well the curriculum states 4 types of options
1) Long call - right to buy an underlying asset
2) Short call - obligation to sell the underlying
3) Long put - right to sell the underlying asset
4) Short put - obligation to buy the underlying
This is where Im confused. Options are the given right to buy the underlying and with futures/forwards you have the obligation. Now don't short calls/ short puts contradict this? I mean they both are an obligation rather than the right to make action.
Are Short calls just Long puts and are Long calls are short puts?
Or are both shorts technically forwards rather than options?
Im a little bit confused, I hope I havent confused you.
Help!
Thanks |
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