Question
You are short an ATM put option on JP Morgan with a strike of $50. You read some news that makes you bearish on the
You are short an ATM put option on JP Morgan with a strike of $50. You read some news that makes you bearish on the stock with a view that volatility will rise. You should:
A. Buy a put with a strike of $50
B. Sell a put with a strike of $45
C. Sell a call with a strike of $55
D. Buy a call with a strike of $55
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Corporate Finance Reader
Authors: Robert W. Kolb
2nd Edition
1878975536, 978-1878975539
