Back to School With Marketing Guru Ed Usset #40

RSS

Problems viewing videos?
Download latest Flash Player

When a put option is exercised, the seller of the put...

  1. is long the underlying futures contract
  2. is short the underlying futures contract
  3. pays the premium
  4. is long a call

 

Answer (a): When exercised, the buyer of a put option is short the underlying futures contract, because the buyer has bought the right to sell futures. The seller of the put or, in this case, the oldest seller of this particular put option, is obligated to take the other side of the market. The seller of the put ends up with a long futures position.

Discuss this Video 0

Post new comment
or to use your Corn and Soybean Digest ID
You can still get free marketing insights!

Missed our USDA Report marketing seminar? View it on demand and benefit from the insights and analysis that will help your bottom line.

How USDA Report Will Impact Crop Prices
And Your Bottom Line

Check it out now

Newsletter Signup
Continuing Education Courses
New Course

Accredited for 2 hours/CCA Soil & Water credits. The 2,000 member...

This online CE course details sound mechanical irrigation design and management practices to...
Keeping crop protection chemicals on the crop for which they are intended has been a...

Search 3.8+ million listings

Sponsored Introduction Continue on to (or wait seconds) ×