Zero cost: Difference between revisions
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imported>Doug Williamson (Undo revision 10118 by Doug Williamson (talk)) |
imported>Doug Williamson (Layout.) |
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1. | |||
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. | |||
2. | |||
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 15:54, 13 May 2016
1.
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.
2.
Any structure which has no cost, or which may appear to have no cost.
