Option spread

Definition:

The trading of options of the same class at the same time in order to profit from changes in the size of the spread between different options.

Investing Essentials


Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University

Term of the Day

Arizona Stock Exchange

A single price auction exchange for equity trading that allows anonymous buyers and sellers to trade at low transaction costs.

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