box option |
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Definition
Dual-option position that aims to profit from the discrepancies in the market prices of option contracts by using two pairs of puts and calls, all with the same expiration date but each pair having a different exercise price. Box options are considered immune to the fluctuations in the underlying asset's price.
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box option is in the Commodities & Precious Metals Trading, Disaster Planning & Risk Management and Securities & Futures Trading subjects.
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