posted by .

I am having trouble with options.
Long call, i know it means you buy the right to buy an asset. Long put, you buy the right to sell an asset. What is confusing the the short call and short put. What does it mean you sell the right to buy and sell the right to sell?

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. finance

    what are the steps to - buy 1 undervalue stock using CAPM(long) -Sell short 1 overvalue CAPM -Buy a stock or sell short using ratio analysis
  2. finance (current asset)

    An item which may be converted to cash within one year or one operating cycle of the firm is classidied as a.... A. current liability B. long-term asset C. current asset D. long-term liability I like C current asset-the quest is the …
  3. Finance

    A trader buys a European call option and sells a European put option. The options have the same underlying asset, strike price and maturity. Describe the trader's position. Under what circumstances does the price of the call equal …

    The demand for gasoline is less elastic in the short run than in the long run. Which of the following is a reason for this?
  5. Finance - Options

    MRK is selling at 27.03. If I buy a 27.5 call and it's data consists of Last 1.85 Change- down .05 Bid 1.75 Ask 1.85 Volume 231 Open Int 9815 Then why would I only make .35 if MRK is selling at 29?
  6. Finance

    1. Determine the intrinsic values of the following call options when the stock is selling at $32 just prior to expiration of the options. a. $25 call price b. $30 call price c. $35 call price
  7. Math Word problem

    Ken and Ben were both saving money to buy a TV. Ken was $255 short of the amount needed and Ben was $315 short of the amount needed to buy the TV. If they combined their money, they had eaxctly enough to buy one TV. how much did the …
  8. MathematicalModels

    Assume that the future dividends on a given stock S are known, and denote their discounted value at the present time t by D¯(t). For American call and put options values C(t) ,P(t), suppose we have that P(t)−D¯(t)−K>C(t)−S(t) …
  9. Math

    You want to buy your dream car, but you are $5,000 short. If you could invest your entire savings of $2,350 at an annual interest rate of 12%. How long would you have to wait until you have accumulated enough money to buy the car?
  10. English

    1. Julie could have bought the book. 2. Julie might have bought the book. 3. Julie could have bought the book, (but she borrowed it from the library instead.) 4. Julie could buy the book yesterday. 5. Julie was able to buy the book …

More Similar Questions