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29-03-2017, 09:41 AM
(28-03-2017, 10:14 PM)Triple70 Wrote: Googled "equity collar".
http://www.cboe.com/strategies/intermedi...tegy/part1
Sounds like the counter party would be the same as the earlier announcement.
Investment banks seldom leave themselves exposed on derivates, it's common practice, or at least they are supposed to cover the other end to negate risk. So they'll earn a reasonable arrangement fee while not holding net positions which can result in large investment losses.