融跃教育

来自:FRM > 一级 > 电脑版 > Unit 10.期货 2020-04-13 11:08
Hello Instructor, How to understand this question? What does "with a long exposure" mean? Does it mean holding an asset and he wants to sell in future? Sorry i don't have Chinese input keyboards so i am typing in English Thanks, Yusha
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Jason    2020-05-06 15:05

致精进的你:

Hello, i can give you an example to understand this question.You invest $10 in a stock,you will suffer from a loss if the price of your stock drop.In this situation,you can use derivatives to hedge your exposure. Selling a future means that you lock a selling price in $7 when you enter into a contract.If the price of your stock drop to $2 ,you can still sell your stock at $7 when your contract expired.Buying a put option means you believe the price of your stock will drop in the future .When you buy a put option with strike price at $7,you can sell your stock at $7 when the price of your stock drop to $2 in the expiretion date.However,you will lose $8(from $10 to $2)without using hedging instrustments.

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