short call

问题如下：

VFO's market strategist believes that Biomian's share price will rise over the next six months but would like to protect against a decline in Biomian's share price over the period. Which of the following positions is best suited for VFO to manage its existing Biomian exposure based on this view?

选项：

A.A long put position on Biomian stock that expires in six months B.A short call position on Biomian stock that expires in six months C.A long futures position in Biomian stock that settles in six months

解释：

Solution

A is correct.

VFO should purchase a six-month put option on Biomian shares to manage its exposure based on the market strategist's view. This contingent claim grants VFO the right but not the obligation to sell Biomian shares at a pre-agreed exercise price in exchange for a premium. A put option buyer exercises the option at maturity when the underlying price is below the exercise price. This allows VFO to continue to benefit from a rise in Biomian's share price over the next six months with a limited downside. Neither B nor C provides VFO with downside protection if Biomian stock declines in six months.

中文解析：

A选项的long put可以使得VFO可以在未来6个月继续从Biomian股价上涨中受益；同时如果股价下跌，且跌至行权价格之下时，还可以行权，保证跌幅有限。

B和C不选，因为如果Biomian股价在六个月内下跌，B和C都不能为VFO提供下行保护。