Exercise Solution 1.14

Exercise Solution 1.14

Various answers are possible. Consider the following.

  1. A short straddle—short a put and short a call, both on the same underlier, for the same maturity, same notional amount, and struck at the same price.
  2. Short a put option.
  3. A cartwheel options spread.

 
Comments are closed.

Powered by WordPress. Designed by WooThemes