Posted by: cffm | April 30, 2009

Ed’s World Quiz Question

When a put option is exercised, the seller of a put…

a. is long a put
b. is short a call
c. is long the underlying futures contract
d. is short the underlying futures contract
e. pays the premium.

Click here to see the answer.


Responses

  1. d. you are short the futures market

    • The answer is LONG the underlying futures contract.

  2. f. …winds up on the DL if he/she didn’t warm up first.

  3. […] Ed’s World Quiz Answer On April 30, I posted the following question. […]


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