An option trading strategy which involves selling a near-month call option and buying a far-month call in order to benefit from the accelerated time decay of the near-month option with regard to the far-month option. In other words, an investor following such a strategy will take advantage of the situation where the value of the near-month option declines by more than that of the longer-term option.
Derivatives
Derivatives have increasingly become very important tools in finance over the last three decades. Many different types of derivatives are now traded actively on ...
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