I understand that when the put-call parity equation is rearranged to be p = c - S + X/(1+r)T, this means long put = long call, short asset, long bond. My question is regarding the “short asset”. Does shorting the asset in this equation mean that the analyst take either of these 2 positions to short the asset?..
- Selling a call option (short the position and short the asset)
- Buying a put option (long the position and short the asset)