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Combination matching |
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Combination matchingAlso called horizon-matching, a variation of multiperiod immunization and cash flow-matching in which a portfolio is created that is always duration-matched and also cash-matched in the first few years.Combination matching Similar MatchesCalendar Straddle or CombinationCalendar Straddle or CombinationSee Calendar Spread. CombinationCombinationApplies to derivative products. Arrangement of options involving two long or two short positions with different expiration dates or strike (exercise) prices. See: Straddle. Combination bondCombination bond+ A bond backed by the government unit issuing it as well as by revenue from the project that is to be financed by the bond. Covered combinationCovered combinationA strategy in which one call and one put with the same expiration, but different strike prices, are written against each 100 shares of the underlying stock. Example: writing 1 XYZ Jun 50 call and 1 XYZ Jun 55 put, and buying 100 shares of XYZ stock. In actuality, this is not a fully 'covered' strategy because assignment on the short put would require purchase of additional stock. Combination strategyCombination strategyA strategy in which a put and call with the same strike price and expiration are either both bought or both sold. Related: Straddle Further SuggestionsCombination annuitycombination Combination order Business combination Ratio Calendar Combination |
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