An option trading strategy which replicates the short selling of the underlying and involves buying a put (long put) and simultaneously selling a call (short call) on the same underlying. This option combination potentially produces unlimited gains in case the underlying moves downward and unlimited losses in the opposite case, i.e., when the underlying moves upward.
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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