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Methodologies / fx-collar-strategy

FX Collar Strategy

Long put + short call (or reverse) net premium and payoff. Option structure only — not the underlying FX position.

v1.0fx-collar-strategy

Formula

net_premium = long premium − short premium; payoff = sum of legs

Assumptions

  • Vanilla European legs only.

Limitations

  • Not a hedge recommendation.
  • Payoff is the option legs only; it does not include the underlying FX position.

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