Zero cost: Difference between revisions
From ACT Wiki
Jump to navigationJump to search
imported>Doug Williamson (Layout.) |
imported>Doug Williamson (Classify page.) |
||
| Line 11: | Line 11: | ||
== See also == | == See also == | ||
* [[Collar hedge]] | * [[Collar hedge]] | ||
[[Category:Financial_products_and_markets]] | |||
Latest revision as of 10:31, 21 November 2021
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.
