Answer to Question #145371 in Economics of Enterprise for Hassan Raafat Mohamed

Question #145371
Which is riskier, buying or selling a “put?”
1
Expert's answer
2020-11-23T10:24:55-0500
"Solution"

Selling an equity put is riskier. This is because Selling an equity put creates an obligation to purchase the underlying stock. The profit potential is limited to the premium received, but the risk is still substantial making it more riskier.


Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!

Comments

No comments. Be the first!

Leave a comment

LATEST TUTORIALS
New on Blog
APPROVED BY CLIENTS