SIE practice questioneasyLong/short positions
An investor who writes a call option is said to be:
- ALong the call
- BShort the call✓ Correct answer
- CLong the put
- DShort the put
Explanation
Why B — Short the call
Writing (selling) an option creates a short position in that option. Choice A and C refer to buying options, and D describes the wrong type of option.
Turn it into reps
Reading one answer is not the same as being ready
Lucky the Banker is a free practice app with 1,867+ SIE questions, weak-area tracking, and timed mock exams. No credit card, no paywall.
Related Equity Securities questions