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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Collar
Sir
Under collar …..any combination of the exercise price in buying a call and selling a put will not give the same answer. Am i right?
Collar is applicable for both the borrower and depositor??
Different combination of exercise prices will result in different limits for the collar, and will have a different net cost.
Yes – collars could be used by both borrowers and by depositors.
Have you read my note on collars? (I gave you the link to it in my previous answer to you).
Yes thank you sir
You are welcome 🙂