Question
What is the term used for options that do not have
offsetting positions?Solution
Naked or uncovered options are those which do not have offsetting positions, and therefore, are riskier. On the other hand, where the option writer has corresponding offsetting position in the asset underlying, the option is called covered option. Writing a simple uncovered (or naked) call option indicates toward exposure of the option writer to unlimited potential losses for earning more premium.
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The Bhopal tragedy was caused by the gas
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Indian Council of Agricultural Research was established in the year
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The stage in the communication process, where the receiver relates and interprets the decoded message to what he already knows, is known as
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