Chapter 02 · Section 2.1

Short DM Puts

Lara is short 4 PHLX DM June 45 puts.

Which of the following statements is correct?

a) Lara has no obligations arising from her put position.
No. Lara is short a put.
b) Lara may be assigned the obligation to sell DM 250,000 at $.45/DM, until the expiration date in March.
c) Lara may be assigned the obligation to buy DM 250,000 at $.45/DM, until the expiration date in March.