Which of the following would not be considered as holding a long position?
A) Purchaser of preferred stock
B) Option buyer of a put option
C) Option buyer of a call option
D) Purchaser of corporate bonds
E) Purchaser of an exchange traded fund

Question

Quizplus · Accepted Answer

Holding a long position typically means you own an asset or have a right to buy it, expecting its value to increase. A put option buyer, however, gains when the underlying asset's price decreases, which is not aligned with the typical expectation of a long position's benefit from rising prices.

Which of the Following Would Not Be Considered as Holding