Pierre-Louis Robert just purchased a call option on shares of the Michelin Group. A few days ago he wrote a put option on Michelin shares. The call and put options have the same exercise price, expiration date, and number of shares underlying. Considering both positions, Robert’s exposure to the risk of the stock of the Michelin Group is:
- long.
- short.
- neutral.
Answer should be long
As both his position is suggesting upward expectations
but there the exposure to risk is of short naaa….
call ko buy kiya hai aur put ko sell kiya hai toh dono position par bullish hai.
usko dar iska ha na ki kahi stock gir na jaye ????