To hedge a short share position one can short the put


To hedge a short share position, one can short the put option on the share.

• What is the investor's intention in selling the put option?

• What does the strike indicate when the trader has zero risk tolerance?

• Under what circumstances will the trade prove to be effective?

• What are her risks?

Solution Preview :

Prepared by a verified Expert
Finance Basics: To hedge a short share position one can short the put
Reference No:- TGS02938033

Now Priced at $10 (50% Discount)

Recommended (91%)

Rated (4.3/5)