thanks Zior, appreciate you taking time to explain that.
one thing confuses me though. how would mr big in this example still have 100mill exposure at the end? in order to close his short position he needs to offset against his holding. isn't it a zero sum game for him? ie in either scenario his nett holding is zero. i think i am missing something here? or does it have something to do with options?
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thanks Zior, appreciate you taking time to explain that.one...
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