Which of the following would not be considered as holding a short position?
A) Option writer of a call option
B) Option buyer of a put option
C) Purchaser of corporate bonds
D) Seller common stock that you do not currently own

Question

Quizplus · Accepted Answer

Holding a short position typically involves betting on the decline of an asset's value. Option writers of call options (A) and sellers of stock they do not own (D) are indeed taking short positions, expecting the underlying asset's value to decrease. Option buyers of put options (B) are also betting on the decline of the asset's value. However, purchasers of corporate bonds (C) are investing in a debt instrument, expecting to earn returns through interest, which does not constitute taking a short position.

Which of the Following Would Not Be Considered as Holding