Fundamentals of Corporate Finance (4th Edition) (Berk, DeMarzo & Harford, The Corporate Finance Series)
Fundamentals of Corporate Finance (4th Edition) (Berk, DeMarzo & Harford, The Corporate Finance Series)
4th Edition
ISBN: 9780134475561
Author: Jonathan Berk, Peter DeMarzo, Jarrad Harford
Publisher: PEARSON
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Chapter 21, Problem 3CT
Summary Introduction

Financial Option: a: Financial option is a financial contract between two parties, in which the right is given to the buyer or seller to buy or sell a particular asset on some future date at a fixed price without any obligation to buy or sell.

To Explain: Difference between a long position in a put and a short position in a call.

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