It is possible to combine a short position in a call option with a long position in the underlying asset so that their combined value is insensitive to changes in the underlying asset price. Short position in a call option sometimes results in a positive payoff at maturity. Selling a call option exposes the issuer to risk if the price of the underlying goes up. It is possible to combine a short position in a put option with a long position in the underlying asset so that their combined value is insensitive to changes in the underlying asset price. Page 20 of 20