|
|
Call spread |
|
|
|
 Home Site Map Add Term Search About Us Contributors |
Call spreadThe simultaneous purchase (sale) of a call at one exercise price and sale (purchase) of another call at a higher exercise price.Similar MatchesBear put spreadBear put spreadThe purchase of a put with a high strike price against the sale of a put with a lower strike price in expectation of declining prices. The maximum profit is calculated: (high strike price - low strike price) - net premium received where net premium received = premiums paid - premiums received. SpreadSpreadThe difference between the bid price and the offer price for shares and for units in a unit trust. Market makers make their profit from the spread. They buy shares at the lower bid price and sell at the higher offer one. Underwriting spreadUnderwriting spreadThe income that is generated by the underwriting syndicate and the selling group, which is essentially the difference between the amount paid to the issuer of securities in a primary distribution and the public offering price. Interdelivery spreadInterdelivery spreadUsed in futures or options market to refer the purchase of one month of a contract and selling another month in the same contract, in the hope that the price difference will widen or narrow, depending on the investment. Delta SpreadDelta SpreadA ratio spread that is established as a neutral position by utilizing the deltas of the options involved. The neutral ratio is determined by dividing the delta of the purchased option by the delta of the written option. See also Ratio Spread and Delta. Further Suggestionscondor spreadSelling the spread box spread bull spread bid/offer spread ratio spread Spread position spread betting Intracommodity spread Yield spread strategies NOB spread Spread income Generic credit spread Bid/ask spread Maturity spread bid offer spread Price spread Vertical spread Spread strategy bear spread debit spread Intercommodity spread crack spread diagonal spread TED spread |
|
|
|