Equity Investments Q67 Multiple Choice Questions

Option : C
Explanation : Since Mr. Ahmed has written a put contract, he is short the option and has an obligation to purchase the asset if exercised by the put owner. He also has a long exposure to the risk of the underlying index future because he benefits when its quoted price increases—that is, when the put declines in value (or suffers a loss when its quoted price decreases as the put increases in value).