N
Nimisha
Member
Hi
The course notes state that "We cannot really have a covered put (except in the sense of holding cash equal to the exercise price) because u can't be short of the underlying asset".
I am unable to understand why is a covered put not possible and have not understood the above paragraph.
The course notes state that "We cannot really have a covered put (except in the sense of holding cash equal to the exercise price) because u can't be short of the underlying asset".
I am unable to understand why is a covered put not possible and have not understood the above paragraph.