(Answered) 1 listed below are four basic option positions two

Finance

1. Listed below are four basic option positions. Two of these are generally bearish and two are bullish. Put them in the correct column.

buy a call write a call buy a put write a put

BEARISH BULLISH

_______________ _______________

2.Explain the difference between an American option and a European option.

3.How do index options simplify the process of option overwriting with large portfolios?

4.Give an example of a circumstance in which you feel writing an individual equity call option would be preferable to writing an index option.

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