Collar

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Revision as of 09:44, 1 August 2015 by imported>Doug Williamson (Clarify that 'collar' can refer either to the options or to the hedged profile.)
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Risk management.

A collar hedge, built using a combination of two options.

The term 'collar' can refer either to:

  1. The options themselves or
  2. The hedged profile achieved with the combination of the underlying exposure and the two options.


See also