A 'Collar' Is a Combination of Options That Involves Holding

question 7

True/False

A 'collar' is a combination of options that involves holding an underlying asset and purchasing a put and selling a call on that asset.

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Definitions:

Ligaments

Tough, fibrous tissues that connect bones to other bones, providing stability and support in joints.

Voluntary

Actions or movements that are under conscious control, typically referring to muscle movements initiated by individual choice.

Involuntary

Actions or processes within the body not under conscious control, such as the heartbeat or digestive movements.

Adipose Tissue

A type of body tissue containing stored fat, used for energy storage, insulation, and cushioning of organs.