is there any shortcut to memorize how to exercise the price? in some questions we exercise when the exercise price is greater than the expected future price in some cases the opposite? i am having difficulty in understanding when to exercise the price
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collars, options on futures
2y ago#1If they are borrowing money then they will buy put options and will exercise them if the exercise price is higher than the futures price.
If they are depositing money then they will buy call options and will exercise them if the exercise price is lower than the futures price.
Have you watched my free lectures on interest rate options?
what about collars? please help thank you
2y ago#3If they are borrowing money then they will buy put options and sell call options in order to create a collar.
If the are depositing money then they will buy call options and sell put options.
Again, have you watched my free lectures on this?
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