exactly. back to CFAI world. whatever they say is real, whatever they say is real.
+1 guys! CFAI is what I understand.
this makes no sense… why would you short soemthing you own? You have twice the money tied up and no gain potential. The oppurtunity costs is great and return is nothing. Clearly no risk for negative reward.
I’m lost. If you own 100MM, you’re worried about a decline to the point that you are willing to give up any upside, sell the damn position.
If you sell, and the stock rises 50%, you’d have to pay that much to get your position back.
The options in this question is weird, answer A is an ACTION, B and C are not! The answer didn’t say what exactly are you doing with the put option. Are you buying or writing one? Or is this implied?