Islamic Finance

Ba’i al-Musawamah

August 19, 2021
Derivatives

What Is the Difference Between a Cap and a Swaption?

August 19, 2021

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A complex option trading strategy which involves, like an iron condor spread, buying and selling of both puts and calls at four different exercise prices. However, it differs from an iron condor spread in that the put strike prices in a gut iron condor spread are higher than the call strike prices.

There are two types of gut iron condor spreads: a long gut iron condor and a short gut iron condor.

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