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Derivatives




Roll Down and Out


An option-related strategy that is based on the replacement of a position by closing out one option with a near-month expiration and opening another position at a lower strike price with a further expiration. For example, an investor may offset one long March 100 put and purchase one or more April 95 puts.



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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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