Zero-Gain Collar – Fincyclopedia
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Zero-Gain Collar


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.



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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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