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Collar for options

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

  • This topic has 1 reply, 2 voices, and was last updated 7 years ago by AvatarJohn Moffat.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • July 3, 2018 at 3:31 pm #460837
    Avatarduybachhpvn
    Member
    • Topics: 48
    • Replies: 34
    • ☆☆

    Hi John,

    The collar was only discussed in the textbook for Interest rate options. I wonder if Foreign currency options can also use Collar strategy to reduce premium cost? I think it would be perfectly fine but just want to confirm

    Thanks

    July 4, 2018 at 8:35 am #460916
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54839
    • ☆☆☆☆☆

    In principle it could be done, but in the exam collars always relate to interest rate options.

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Viewing 2 posts - 1 through 2 (of 2 total)
  • The topic ‘Collar for options’ is closed to new replies.

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