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.
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.
The fact that Lara is short 4 puts means that she is a net writer or writer of 4 puts.
The contract size of both the PHLX Deutsche Mark and the PHLX Swiss Franc is 62,500.