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Explanation:
A. Incorrect because the writer of a put option has a long exposure to the underlying.
B. Correct because put contract holders [buyers] have long exposure to their option contract and short exposure to the underlying instrument.
C. Incorrect because the holder (buyer) of a call option has a long exposure to the underlying.
Market Organization and Structure
• compare positions an investor can take in an asset
A short exposure to an underlying instrument is achieved by:
A
writing a put option.
B
buying a put option.
C
buying a call option.
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