You are managing a separate portfolio dedicated to your retirement income. You do not wish to take
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Question:
You are managing a separate portfolio dedicated to your retirement income. You do not wish to take excessive risk, and would prefer to limit the downside.
What common option structure would suffice and how would you implement this structure to protect the portfolio's value?
- A bullish call spread is bullish on direction. Is it also bullish on volatility?
- What is the volatility view implied by a long horizontal call spread?
- What about a short horizontal put spread?
Related Book For
Fundamentals of Investments Valuation and Management
ISBN: 978-0078115660
7th edition
Authors: Bradford Jordan, Thomas Miller
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