Combination matching


 

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Combination matching

Also 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 Matches

Calendar Straddle or Combination

Calendar Straddle or Combination

See Calendar Spread.


Combination

Combination

Applies to derivative products. Arrangement of options involving two long or two short positions with different expiration dates or strike (exercise) prices. See: Straddle.


Combination bond

Combination 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 combination

Covered combination

A 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 strategy

Combination strategy

A strategy in which a put and call with the same strike price and expiration are either both bought or both sold. Related: Straddle


Further Suggestions

Combination annuity
combination
Combination order
Business combination
Ratio Calendar Combination


 
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