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hares in some company are currently selling at $30 each. A bearish trader can either buy 100 put options for total of $100 with a

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hares in some company are currently selling at $30 each. A bearish trader can either buy 100 put options for total of $100 with a strike price of $30 per share, or short sell 100 shares after paying a fee of $80, Which of he following is correct? The no arbitrage assumption means that the profit is always the same, whether buying put options or short selling shares. The put option will protect the trader from potentially large losses. Since share prices will fall, the trader will definitely make a profit. Shares in some company are currently selling at $30 each. A bearish trader can either buy 100 put options for a total of $100 with a strike price of $30 per share, or short sell 100 shares after paying a fee of $80. Which of the following is correct? The no arbitrage assumption means that the proft is always the same, whether buying put options or short selling shares The put option will protect the trader from potentially large losses. Since share prices will fall, the trader will definitely make a proft

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