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1. in collar we may either buy or sell call option.
When when we exercise call option, do we exercise when future price is larger than exercise price regardless of we are buying or selling call option ????
With interest rate options you exercise a call option when the futures price is higher than the exercise price. You exercise a put option when the futures price is lower than the exercise price.
I explain all this in my free lectures!!
so we exercise as what you have mentioned regardless of whether we are buying or selling call option/put option ?
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