This can occur in many financial scenarios, such as with stock options, where the long position holds the right to buy a stock at a certain price, while the short position holds the obligation to sell at the same price.
Consider the concept of positive spread, which comes into play when the value of a long option surpasses that of a short option. In finance, this phenomenon can manifest in various contexts, such as with stock options. In this scenario, the long position holds the privilege to purchase a stock at a fixed price, while the short position bears the responsibility to sell at the same price.
