Answer: II and IV only

## Explanation Let's analyze each option: **I. Normal Distribution** - **NO** - Normal distribution is symmetric (skewness = 0) - Not positively skewed **II. Lognormal Distribution** - **YES** - Lognormal distribution is positively skewed by definition - It has a long right tail - Commonly used for asset prices which cannot be negative **III. The Returns of Being Short a Put Option** - **NO** - Short put position has limited upside (premium received) and large downside risk - This creates negative skewness - Maximum gain = premium, maximum loss = strike price - premium **IV. The Returns of Being Long a Call Option** - **YES** - Long call position has limited downside (premium paid) and unlimited upside - This creates positive skewness - Maximum loss = premium, unlimited gain potential **Conclusion:** Only II (Lognormal Distribution) and IV (Long Call Option) exhibit positively skewed distributions.

Author: LeetQuiz Editorial Team