The P&L graph higher than reveals which the protecting collar is a mixture of a covered phone and an extended place. The trade-off is possibly currently being obligated to promote the lengthy stock with the small get in touch with strike. On the other hand, You will likely be pleased to do this since you have by now profited from the underlying shares.

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During the P&L graph earlier mentioned, There's two crack-even points. It will not subject which course the inventory moves so long as the shift is huge enough.

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