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Explain conceptually the choice of strike prices when it comes to designing a zero-cost collar. Specifically address the costs and benefits of two strategies: one strategy has a higher put strike price than the second strategy ? (Case) Professors Don Chance of Louisiana State University and Michael Hemler of the University of Notre Dame have authored an options trading case that corresponds with the material in Chapters 6 and 7. Go to the Cengage web site, http://www.cengage.com/finance/chance and download the Second City Options case.

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Basic Finance, Finance

Category:- Basic Finance
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