Zero-Cost Collar

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Zero Cost Collar

An investment strategy in which one buys or sells one position while taking an opposite position for the same price that will limit both the return and the risk of one's investment. An investor sells a position that caps return while buying one that limits loss, while a borrower does the opposite. A zero-cost collar may be used for options, stocks, interest rates, or commodities. See also: Collar.

zero-cost collar

The investment position of being short a call option and long a put option for stock already owned. The premium received from selling the call option is used to pay for purchase of the put. The collar is designed to protect an investor against a decline in the price of the stock without the investor being required to sell the stock and pay a tax on capital gains.

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Collar Zero Cost Collar			The second is an explicit zero-cost collar that guarantees an annual rate of return by giving up all returns above a certain level. Conference on Retirement Research by NBER Reporter Financial strategies that include zero-cost collars do, however, incur administration and transactional costs. Fuel hedging: lessons from the airlines by Spinetta, Lawrence / Air Force Journal of Logistics On a zero-cost collar, the cap and floor prices are set so that neither party pays a premium up front. How to hedge your bets on resin pricing by Sherman, Lilli Manolis / Plastics Technology			ZEP Zero Zero Balance Zero Balance Account Zero Based Budgeting Zero Basis Risk Swap Zero Bracket Amount Zero Cost Collar zero cost loan Zero Dividend Preference Share Zero Growth Zero Inventory zero lot line Zero Minus Tick Zero Plus Tick Zero Population Growth Zero prepayment assumption Zero Risk Zero Sum Zero Tick Zero Uptick Zero-Balance Account Zero-Base Budgeting Zero-Beta Portfolio Zero-Bracket Amount Zero-Cost Collar Zero-Coupon Bond Zero-Coupon Certificate of Deposit Zero-Coupon Convertible Bond Zero-Coupon Convertible Security Zero-Coupon Mortgage Zero-Floor Limit Zero-Interest Loan Zero-Investment Portfolio Zero-Minus Tick Zero-one integer programming Zero-One Programming Zero-Percent Certificate of Indebtedness or Zero-Percent C of I Zero-Plus Tick Zero-Rated Zero-Sum Game Zessionar Zeta Model Zi Zichan Zichtpapier Zig Zag Zimbabwean Dollar Zinsen Zinssatz Zionism			Zero-Balance Accounts zero-base Zero-base budgeting zero-based zero-based zero-based Zero-Based Budget zero-based budgeting Zero-Based Management Review Zero-Basis Risk Swap Zero-Basis Risk Swaps zero-beat reception Zero-beta portfolio Zero-Beta Portfolios Zero-Bias Conductance Peak Zero-Bias Detector Diode zero-bias tube Zero-bit insertion Zero-bracket amount Zero-bracket amount Zero-Bracket Amounts Zero-Bracket Amounts Zero-Byte Encoding Zero-Change Netlist Transformations Zero-Channel RAID Zero-configuration zero-content Zero-copula Zero-Cost Collar Zero-Cost Collars Zero-Cost Exception zero-coupon zero-coupon zero-coupon bond zero-coupon bond zero-coupon bond zero-coupon bond zero-coupon bond Zero-coupon bonds Zero-coupon bonds Zero-Coupon CD Zero-Coupon CDs zero-coupon certificate of deposit Zero-Coupon Certificates of Deposit Zero-Coupon Convertible Zero-coupon convertible bond Zero-Coupon Convertible Bonds Zero-Coupon Convertible Securities Zero-coupon convertible security Zero-Coupon Convertibles Zero-Coupon Mortgage Zero-Coupon Mortgages Zero-Coupon Securities Zero-Coupon Securities zero-coupon security zero-coupon security Zero-Crossing Detector Zero-Crossing Digital Phase-Locked Loop Zero-crossing rate

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