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Business, 31.12.2019 06:31 ogdeekin

You have 5,100 shares of abc, inc and decide to set up a $40 / $90 collar with 100% downside protection by selling $90 call contracts (assume no residual cash surplus or deficit from the sale and you have given up all upside potential). alternatively, you can set up at $40 / $70 collar with 100% downside protection by selling 22 $70 call contracts (assume no residual cash surplus or deficit from the sale). what price does the stock need to be trading at or above at expiration of the collar to make the $40 / $70 the more profitable strategy?

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You have 5,100 shares of abc, inc and decide to set up a $40 / $90 collar with 100% downside protect...

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