Please explain the following :
1.Exposure of risk for long call and short put. 2. Value tilt :fundamental weighting
Please explain the following :
1.Exposure of risk for long call and short put. 2. Value tilt :fundamental weighting
You really need to try and phrase your question more clearly.
1a. You’re exposed at high risk if you have naked short put but the risk is limited with -(X-St), whereas at short put, St is limited with 0.