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 prots 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 prot if the stock price at the expiration of the ...
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