Derivatives
Foreign Exchange Swap
June 6, 2021
Derivatives
Reverse Barrier Option
June 6, 2021

A hedged position in which the investor purchases more than one call option for each unit of the underlying he has sold short (like a short stock). This position becomes in the money as the market price moves away from the strike price of the options either in upward or downward direction.

It is also referred to as a convexity hedge or a long straddle.

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