Chapter 07 · Section 7.1

Short Butterfly Question 1

You are short the September 40-45-50 butterfly with the underlying at 45. You:

a) are long and want the market to rally.
• b) are short and want the market to fall.
  No.
  c) are neutral and want the market to sit.
  d) you are neutral but want the market to move in either direction.