Chapter 02 · Section 2.1

Short SF Calls-1

Lara is short 2 March 53 PHLX Swiss Franc calls.

Lara has an obligation:

b) to sell Sfr 125,000 at $.53/Sfr before March.
No. Lara is short calls. The call holder has a right to buy, so Lara has an obligation to sell IF ASSIGNED to do so by the exchange clearing house.
c) to buy Sfr 125,000 at $.53/Sfr if assigned between now and the expiration date in March.
d) to sell Sfr 125,000 at $.53/Sfr if assigned between now and the expiration date in March.