Chapter 02 · Section 2.1

Short Call Position

a b c
d e f

Now short option positions: which of the following graphs represents a short call position?

a)
b)
c)
d)
• e)
  No. You were nearly right. For the writer of a call makes a loss if the price of underlying asset rises. The graph you picked does not show a loss for this case and represents a short put.
  f)

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