Combined Option

Combined Option
   An option comprising at least one call and one put. The components may be exercised or traded separately, although they are originally dealt as one. These strategies may be designed to take advantage of a particular view on the market or to reduce outgoing premium costs. Two common examples of combination options are strangle and straddle strategies.
   ► See also Call, Option, Put, Straddle, Strangle.

Financial and business terms. 2012.

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