Chapter 06 · Section 6.1

Short a Put

You are short a put. You have:

• a) sold a put with the intent to purchase it back in the future.
  Yes. Your strategy here is to sell the put option for the price of the premium, wait until the value of the put decreases, then buy back the option for a lower premium. Continue
  b) sold a put you had in inventory.
  c) bought a put in the open market.
  d) bought back a put you had sold previously.
  e) bought back a put you had sold previously.