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The contents of the Structured collar page were merged into Collar (finance). For the contribution history and old versions of the redirected page, please see its history; for the discussion at that location, see its talk page. (23 December 2016)
In the example given, it's stated that the possible gain is $2, less the net cost of the put option (i.e., the cost of the put option, less the amount received on sale of the call option.) Is it possible that you could buy a put for less than you receive for the call? If so, then gain could be over $2. Ecphora (talk) 11:57, 26 April 2009 (UTC)Reply[reply]
Is it really realistic to worry about counterparty risk, at least for the typical investor using standardized options? Options Clearing Corporation takes care of the netting of transactions (in the USA). The retail investor is effectively insulated from counterparty risk by the clearing firms and the clearing house. See http://en.wikipedia.org/wiki/Clearing_house_(finance).