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Re:A guide to pricing and hedging (2003) [pdf] by yoyonz on Wednesday May 22, 2019 @10:38AM (#19981646)
Limited risk in that for the short there is potential for an unlimited loss (-infinity), while for the put option the maximum loss is the premium (-100%).

But the option strategy is much riskier as a loss of -100% is significantly more likely under the put option than the short due to implied leverage, time value decay, etc.

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