ADMS 4503 Lecture Notes - Bear Spread, Bull Spread
2 Apr 2013
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It is however no longer available and cannot be done in the present market due to taxable advantage. 40 2x20 + 40 + 2 ( , 0) e. g. max( 660 a3 , 0) Anything linear drawn on a payoff stock price graph, is risky. floor. Any strategy with a floor means there is hedging. The third strategy has the curves on the upside touching the. Long stock positions. , which means that , u pay premium only when you make money.
