No one could have explained much better than this. Really appreciate.
@FabianMoa4 жыл бұрын
No problem, Venkat
@jonathanleong013 ай бұрын
Happy I've found this.
@nadiga187 ай бұрын
awesome explanation thanks a mil!!
@satishnanda29963 жыл бұрын
Why is the short call at premium -4 and not +4 @1:52 , i couldn't understand that part .
@FabianMoa3 жыл бұрын
Hi Satish, if you use +4, you are looking at the short option from a cashflow perspective (i.e. receiving +4 for selling the option). In my workings, I look at the market value perspective (or a balance sheet view), where asset is positive and liability is negative. Since the short option is a liability, hence I write it as -4. Both methods can be used, just have to apply it consistently.