SEARCH
You are in browse mode. You must login to use MEMORY

   Log in to start


From course:

Option Trading Course Module 1

» Start this Course
(Practice similar questions for free)
Question:

What are the implications if the Short strike expires ITM (in the money) and the Long Strike expires OTM

Author: David J Perrot



Answer:

We get assigned the shares of the contract at contract price (as agreed). We need to pay for that we can sell the very same shares at current market price (as per second contract we did) This will results in a loss since agreed price is higher (ITM) than current market price


0 / 5  (0 ratings)

1 answer(s) in total