Chapter 02 · Section 2.1
Short Gold
Lara has a short position in 10 December 350 CMX gold futures calls.
Which of the following statements are true?
c) She has the right to buy at 350 but no obligations.
No. Lara is short an option (she has written the option) She has the obligation to sell at $350 per ounce if assigned.
d) She has the obligation to buy at 350 if she is assigned.
a) She has limited loss and unlimited profit potential.
b) She has unlimited loss and limited profit potential.
(Click here for help)