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Derivatives and Risk Management, 1st Edition
book

Derivatives and Risk Management, 1st Edition

by Sundaram Janakiramanan
May 2024
Intermediate to advanced content levelIntermediate to advanced
542 pages
27h 26m
English
Pearson India
Content preview from Derivatives and Risk Management, 1st Edition
Combinations of Options: Trading Strategies 321
A calendar spread can also be created using put options by buying long-maturity put options and writ-
ing short-maturity put options. is strategy will also result in prots for a range of stock prices close to
the exercise price.
Calendar spreads are useful if the investor believes that the stock price at the maturity of the short-
maturity option is not likely to move substantially from the exercise price.
A reverse calendar spread is one in which an investor buys a short-maturity option and writes a long-
maturity option. is will create a small prot if the stock price at the expiration of the ...
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Publisher Resources

ISBN: 9781299447547Publisher Website