48 lines
1.4 KiB
Plaintext
48 lines
1.4 KiB
Plaintext
946
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TABLE B-1.
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Equivalent strategies.
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This Strategy is equivalent to
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Call purchase
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Put purchase
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Long stock
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Short stock
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Naked call write
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Naked put write
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Bullish call spread
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(long call at lower strike/
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short call at higher strike)
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Bearish call spread
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(long call at higher strike/
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short call at lower strike)
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Ratio call write
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(long stock/short calls)
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... and is also equivalent to ...
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Straddle buy (long call/long put)
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Appendix B
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This Strategy
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Long stock/long put
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Short stock/long call (synthetic put)
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Long call/ short put (synthetic stock)
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Long put/ short call (synthetic short sale)
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Short stock/short put
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Covered call write (long stock/ short call)
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Bullish put spread
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(long put at lower strike/
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short put at higher strike)
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Bearish put spread
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(long put at higher strike/
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short put at lower strike)
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Straddle write (short put/short call)
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Ratio put write (short stock/ short puts)
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Reverse hedge (short stock/long calls)
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or buy stock/buy puts
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Butterfly call spread Butterfly put spread
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(long 1 call at each outside strike/ (long one put at each outer strike/
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short 2 calls at middle strike) short two calls at middle strike)
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All four of these "butterfly" strategies are equivalent
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Butterfly combination Protected straddle write
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(bullish call spread at two (short straddle at middle strike/
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lower strikes/bearish put spread
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at two higher strikes)
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long call at highest strike/
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long put at lowest strike |