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Short call and Short put

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Short call and Short put

  • This topic has 1 reply, 2 voices, and was last updated 9 years ago by AvatarJohn Moffat.
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  • March 22, 2017 at 1:12 pm #378968
    Avatarsyfar42
    Member
    • Topics: 61
    • Replies: 22
    • ☆☆

    Isn’t short call the same as a Long put option as the person wants the price of the stock to go down?
    Similarly, isn’t short put the same as a Long call option as the person wants the price of the stock to go up?

    March 22, 2017 at 7:07 pm #378992
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54845
    • ☆☆☆☆☆

    A short anything (whether a share or an option or whatever) is when you sell something now and buy it back later (because you think the price will fall).

    A long anything is when you buy something and sell it later (because you think the price will rise).

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  • The topic ‘Short call and Short put’ is closed to new replies.

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