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胖胖 · 2023年10月14日

increase leverage through single period put option

 07:38 (1X) 

How do you increase leverage “杠杆” through both call option and put option


  • call option - borrow money would increase leverage
  • buy stock
  • sell bond
  • put option - but how does buying bond also increase leverage?
  • sell stock
  • long bond

这里跟不了老师讲的逻辑。





1 个答案

pzqa35 · 2023年10月16日

嗨,从没放弃的小努力你好:


The leverage mentioned by the teacher here actually means short sell. The teacher also made it clear in class that borrowing something that is not one's own is using the leverage. When we long put the option, it is equivalent to short stock and long bond, then our leverage is short sell the stock.

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