Synthetic short put: long stock + short call
In case of short put, the profit earned by the seller is
limited to the premium received by him. This is because
premium is the only income received by seller. And loss is
limited to the difference between the strike price and stock
price minus premium. This is because, a put option will
only be exercised when the strike price is more than the
stock price and the seller will make a loss. But this loss is
reduced by the premium received by himJ
Same happens in the case of synthetic short put. As
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Answers
Answered by
0
Answer:
no
Explanation:
dont no synthetic short put 6
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