louiekahn6724 louiekahn6724

24-10-2022
Business

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all of these positions are used to create a zero-cost collar except a) writing a call option on the stock. b) purchasing a put option on the stock. c) purchasing a call option on the stock. d) a long position in the stock.

Answer :

ANKITANAND ANKITANAND

05-11-2022

Positions are used to create a zero-cost collar except purchasing a put option on the stock.

What Is a Zero-Cost Procedure?

The term zero-cost procedure alludes to an exchanging or business choice that involves no cost to execute. A zero-cost system costs a business or individual nothing while at the same time further developing tasks, making processes more effective, or lessening future costs.

What is a zero-premium collar?

A zero-cost collar is a choices collar methodology that is intended to safeguard a broker's possible disadvantage. It does this by using call and put choices which, basically, counterbalance one another. While it will set a limit for potential misfortunes emerging from the exchange, it will likewise cover possible benefits.

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