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Cylinder |
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Cylinder A series of two transactions involving derivatives in which there is no initial cost to the investor. A common example of a cylinder is the sale of one derivative and the use of the proceeds to buy another. It is similar to a positive carry, but does not necessarily involve offsetting positions. Want to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit the webmaster's page for free fun content. |
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