Talk:Collar (finance)

Page contents not supported in other languages.
From Wikipedia, the free encyclopedia

Is gain limited to $2?[edit]

In the example given, it's stated that the possible gain is $2, less the net cost of the put option (i.e., the cost of the put option, less the amount received on sale of the call option.) Is it possible that you could buy a put for less than you receive for the call? If so, then gain could be over $2. Ecphora (talk) 11:57, 26 April 2009 (UTC)[reply]

Counterparty risk[edit]

Is it really realistic to worry about counterparty risk, at least for the typical investor using standardized options? Options Clearing Corporation takes care of the netting of transactions (in the USA). The retail investor is effectively insulated from counterparty risk by the clearing firms and the clearing house. See http://en.wikipedia.org/wiki/Clearing_house_(finance).

71.139.173.184 (talk) 18:01, 15 June 2013 (UTC)[reply]