Chapter 02 · Section 2.1
Short DM Puts
Lara is short 4 PHLX DM June 45 puts.
Which of the following statements is correct?
c) Lara may be assigned the obligation to buy DM 250,000 at $.45/DM, until the expiration date in March.
Yes. Being short a put means having an obligation to buy if the put is exercised.Continue
a) Lara has no obligations arising from her put position.
b) Lara may be assigned the obligation to sell DM 250,000 at $.45/DM, until the expiration date in March.
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