the price of the put contract will rise. The holder is long the put contract and has an indirect short position in the underlying instrument. Analysts call the indirect short position short exposure to the underlying. The put contract holders have long exposure to their option contract and short exposure to the underlying instrument. Option Position Option Positions and Their Associated Underlying Risk Exposures Exhibit 1 Type of Option Exposure to Underlying Risk Call Long Long Call Short Short Put Long Short Put Short Long