Exchanges

Exhaust Price

July 10, 2021
Derivatives

Forward Plus

July 10, 2021

Share

A zero-cost collar which combines an at-the-money short call and a long put, in addition to a long position in the underlying. As such, the zero-gain collar can never show any profits, especially that it gives up all potential gains from upside moves in the price of the underlying.

Leave a Reply

Related Tags

All Topics in the Letter