An Authorised Firm must treat an option or company issued warrant on an equity, basket of equities or equity index that is eligible to be included in the equity method as a notional position in the underlying equity or equities as follows:
(a) a purchased call option and a written put option must be treated as a long position; and
(b) a purchased put option and a written call option must be treated as a short position.
Derived from RM111/2012
(Made 15th October 2012). [VER20/12-12]