Derivatives Flashcards
1
Q
What would you do if you knew
the future?
A
I would buy as many as I could BTCs in 2009/2010 and then sold it in the late 2017
2
Q
What means “short” position in trading?
A
If I have agreed to sell forex forward, I
am short
3
Q
What is an option?
A
An option is a contract written by a seller that
conveys to the buyer the right — but not the
obligation — to buy (in the case of a call option)
or to sell (in the case of a put option) a particular
asset