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Collar

MMd8y ago
Sir Will you please explain collar with Example? Example like Armstrong Q2 s/d 2015.
John MoffatJohn MoffatTutor8y ago#1
I explain collars, with examples, in my article: https://opentuition.com/articles/p4/interest-rate-collars/
MMd8y ago#2
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>>>........
John MoffatJohn MoffatTutor8y ago#3
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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