Zero cost: Difference between revisions
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#A ''zero cost collar'' is an options hedging structure which has a zero net premium payable by the hedging entity. The profit for the provider - and the true cost for the hedger - is built in to the related strike prices of the options, from which the collar is constructed. | #A ''zero cost collar'' is an options hedging structure which has a zero net premium payable by the hedging entity. The profit for the provider - and the true cost for the hedger - is built in to the related strike prices of the options, from which the collar is constructed.#Any structure which has no cost, or which may appear to have no cost. | ||
#Any structure which has no cost, or which may appear to have no cost. | |||
== See also == | == See also == | ||
* [[Collar hedge]] | * [[Collar hedge]] | ||
Revision as of 13:09, 7 August 2013
- A zero cost collar is an options hedging structure which has a zero net premium payable by the hedging entity. The profit for the provider - and the true cost for the hedger - is built in to the related strike prices of the options, from which the collar is constructed.#Any structure which has no cost, or which may appear to have no cost.
