Chapter 02 · Section 2.1
Long DM Puts-1
Lara is long 4 PHLX DM June 45 puts.
Lara has:
a) the right to sell Deutsche Marks at $.45/DM but no obligations.
b) the obligation to sell Deutsche Marks at $.45/DM if she is exercised.
c) the right to buy at $.45/DM but no obligations.
d) the obligation to buy at $.45/DM if she is exercised.
Having a long position in an option means owning the option.