The part of an option spread that constitutes an obligation to buy the underlying asset. It is the side of a spread that a trader is long. For example, if a spread is constructed using a July 15 long call option and a July 15 short put option, the July 15 long call (i.e., the call purchased) is the long leg.
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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