Sir
Will you please explain collar with Example?
Example like Armstrong Q2 s/d 2015.
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Collar
I explain collars, with examples, in my article:
https://opentuition.com/articles/p4/interest-rate-collars/
Sir
Thank you.
Sir,
Under Collar.....
in case of borrowing- Buy put option and sell call option, my problem is what would be the option price for buying put and selling call? and same question in case of depositing>>>........
If you are referring to the strike price, then you can use any combination to illustrate how the collar would work (and the net premium cost) - there is no 'best' combination.
If you are referring to the cost of the options, then you are given the premiums in the question.
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