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PUT options

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › PUT options

  • This topic has 4 replies, 2 voices, and was last updated 9 years ago by AvatarJohn Moffat.
Viewing 5 posts - 1 through 5 (of 5 total)
  • Author
    Posts
  • December 6, 2016 at 8:52 pm #354753
    AvatarMuslim Farooque
    Member
    • Topics: 190
    • Replies: 134
    • ☆☆☆

    Sir i was curious that in most questions ive seen , none of them really in involve selling put options,
    When we talk about the greeks over there we are talking about calls ,and furthermore in constructing collars we talk about how we can sell calls to create collars,

    December 7, 2016 at 6:47 am #354857
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54845
    • ☆☆☆☆☆

    I am not sure what your question is? 🙂

    December 7, 2016 at 7:29 am #354882
    AvatarMuslim Farooque
    Member
    • Topics: 190
    • Replies: 134
    • ☆☆☆

    Im saying sir that fir example we are paying premium on a call option so can we sell a put option to create a collar

    December 7, 2016 at 6:13 pm #361968
    AvatarMuslim Farooque
    Member
    • Topics: 190
    • Replies: 134
    • ☆☆☆

    I guess it would goes both ways , if we buy a put then we should sell a call and hence it would be the opposite scenario if we are buying callls we would sell puts?

    December 7, 2016 at 7:01 pm #361998
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54845
    • ☆☆☆☆☆

    That is true – which you buy and which you sell depends on whether you are borrowing or depositing. (My note on collars should make this clear for you)

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