toledo100
Brioches salate
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Una nota stonata x i graficisti: C'e' un gap aperto a 1.593
If a stock has strong long-term potential, but in the short-term has high down-side risk then a collar can be considered. Investors will also consider a collar strategy if a stock they are long in has recently appreciated significantly. To protect these unrealized gains a collar may be used. The use of a collar strategy is also used in mergers and acquisitions. In a stock deal, a collar can be used to ensure that a potential depreciation of the acquirers stock does not lead to a situation where they must pay much more in diluted shares.
What is your payoff if the price of the asset falls to $80?
Rather than experiencing the full loss of $80 – $100 = -$20, you have ended with a net loss of only $10.
What is your payoff if the price of the asset increases to $105?
It is the same payoff from just holding the underlying asset: $105 – $100 = $5
What is your payoff if the price of the asset increases to $115?
It is less than if you had just held the underlying asset: $115 – $100 = $15. In this scenario, the collar is limiting the upside potential of the underlying asset.
In the scenarios above, the call option you’ve sold completely covers the cost of buying the put option. It is called a zero-cost collar. Below is an illustration of the collar position:
Here, we can see that the loss is capped if the price of the underlying asset falls below $90. Similarly, if the price of the underlying asset rises above $110, the payoff is also capped. To further illustrate this, let’s look at two more scenarios.
What would the payoff be if the asset dropped in price to $0?
It is the same payoff when the asset fell to a price of $80. We see that the protective put is capping the losses experienced from a fall in the underlying asset.
What would the payoff be if the asset rose in price to $200?
It is the same payoff when the price increased to $115. Here, we can see how the collar position limited the upside potential of the underlying asset.
Io non ho studiato economia quindi la vedo come un'operazione da non capirci nulla.....
Mi fa'supporre che angelino abbia bisogno di soldi per altri investimenti.....
Sono a garanzia di obbligazioni finaziarie che ha assunto la società di angelo moratti e con questo vanno a chiudere un debito con la chiusura a rate a ciascuna scadenza collar....
Sicuramente qualcuno è più ferrato di me e me lo può spiegare....
A garanzia delle obbligazioni finanziarie relative alle operazioni assunte, Angel Capital ha contestualmente stipulato un contratto di pegno con BofA avente ad oggetto le stesse azioni oggetto del collar (che prevede che il diritto di voto rimanga in capo ad ACM, salvo in caso di default) nonche' sul saldo di un conto di liquidita' appositamente costituito" aggiunge il veicolo di Angelo Moratti.
L'operazione "prevede l'erogazione di un prestito ad Angel Capital Management per un importo calcolato in ragione del numero di azioni ordinarie Saras sottostanti l'operazione collar e di un prezzo di riferimento quantificato ai sensi del contratto collar, che sara' rimborsato a rate alla scadenza di ciascuna tranche dell'operazione collar.'
If a stock has strong long-term potential, but in the short-term has high down-side risk then a collar can be considered. Investors will also consider a collar strategy if a stock they are long in has recently appreciated significantly. To protect these unrealized gains a collar may be used. The use of a collar strategy is also used in mergers and acquisitions. In a stock deal, a collar can be used to ensure that a potential depreciation of the acquirers stock does not lead to a situation where they must pay much more in diluted shares.
Collar Option Strategy – Worked Example
Let us now look at an example that involves creating a collar. Say you are holding a long position on an asset that has just recently appreciated to a price of $100. You are unsure about the price stability in the near-term future and want to utilize a collar strategy. You buy a put option with a strike price of $90 at a premium of $5. You also sell a call option for $5 with a strike price of $110.What is your payoff if the price of the asset falls to $80?
- The call option you’ve sold will not be exercised by the buyer and you will end with a payoff of $5.
- The put option you’ve bought for $5 will be exercised with a strike price of $90 meaning a payoff of $5.
- The underlying asset will be worth $80 meaning a loss of $20.
Rather than experiencing the full loss of $80 – $100 = -$20, you have ended with a net loss of only $10.
What is your payoff if the price of the asset increases to $105?
- The call option you’ve sold for $5 will not be exercised since the underlying asset price is still below the strike price. You will end with a payoff of $5.
- The put option you’ve bought will not be exercised since the underlying price is above the strike price. You will realize a net loss of $5.
- The underlying will be worth $105, meaning a net gain of $5.
It is the same payoff from just holding the underlying asset: $105 – $100 = $5
What is your payoff if the price of the asset increases to $115?
- The call option you’ve sold for $5 will be exercised at a strike price of $110. The payoff will be $0.
- The put option you’ve bought for $5 will not be exercised. The loss from the transaction will be -$5.
- The underlying asset will be worth $115, meaning a gain of $15,
It is less than if you had just held the underlying asset: $115 – $100 = $15. In this scenario, the collar is limiting the upside potential of the underlying asset.
In the scenarios above, the call option you’ve sold completely covers the cost of buying the put option. It is called a zero-cost collar. Below is an illustration of the collar position:
Here, we can see that the loss is capped if the price of the underlying asset falls below $90. Similarly, if the price of the underlying asset rises above $110, the payoff is also capped. To further illustrate this, let’s look at two more scenarios.
What would the payoff be if the asset dropped in price to $0?
- The call option you’ve sold for $5 would not be exercised and the payoff would be $5.
- The put option you’ve bought for $5 would be exercised at a strike price of $90. The payoff would be $90 – $5 = $85.
- The underlying asset’s fallen from $100 to $0, resulting in a loss of $100.
It is the same payoff when the asset fell to a price of $80. We see that the protective put is capping the losses experienced from a fall in the underlying asset.
What would the payoff be if the asset rose in price to $200?
- The call option you’ve sold for $5 would be exercised and the payoff would be $5 – $90 = -$85.
- The put option you’ve bought for $5 would not be exercised. The loss from this transaction would be -$5.
- The underlying asset’s risen from $100 to $200, resulting in a gain of $100.
It is the same payoff when the price increased to $115. Here, we can see how the collar position limited the upside potential of the underlying asset.