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Collar

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Collar

  • This topic has 3 replies, 2 voices, and was last updated 8 years ago by AvatarJohn Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • March 5, 2018 at 7:19 am #440269
    AvatarMd
    Member
    • Topics: 3
    • Replies: 6
    • ☆

    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??

    March 5, 2018 at 10:25 am #440294
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54836
    • ☆☆☆☆☆

    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).

    March 8, 2018 at 6:20 am #441257
    AvatarMd
    Member
    • Topics: 3
    • Replies: 6
    • ☆

    Yes thank you sir

    March 8, 2018 at 9:40 am #441326
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54836
    • ☆☆☆☆☆

    You are welcome 🙂

  • Author
    Posts
Viewing 4 posts - 1 through 4 (of 4 total)
  • The topic ‘Collar’ is closed to new replies.

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