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Combination strategy |
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Combination strategyA strategy in which a put and call with the same strike price and expiration are either both bought or both sold. Related: StraddleCombination strategy Similar MatchesBusiness combinationBusiness combinationSee: Merger 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 annuityCombination annuitySee: Hybrid annuity 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 matchingCombination 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. Further SuggestionscombinationCombination bond Calendar Straddle or Combination Combination order Ratio Calendar Combination |
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