Question
Suppose I want to buy a laptop for $500. I sell a legally enforceable certificate for $10 which gives the buyer of the certificate the
Suppose I want to buy a laptop for $500. I sell a legally enforceable certificate for $10 which gives the buyer of the certificate the right to sell a laptop for $500 three months from today.
In terms of derivative terminology, what is my position? What is the certificate buyer’s position?
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SOLUTION In derivative terminology your position is that of the option seller since you are selling ...
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Vector Mechanics for Engineers Statics and Dynamics
Authors: Ferdinand Beer, E. Russell Johnston Jr., David Mazurek, Phillip Cornwell, Brian Self
11th edition
73398241, 978-0073398242
