Butterfly Spread

Definitions

A three-legged spread in futures or options. In the option spread, the options have the same expiration date but differ in strike prices. For example, a butterfly spread in soybean call options might consist of two short calls at a $7 strike price, one long call at a $7.50 strike price, and one long call at a $6.50 strike price.

Mobile Flip Menu

Close Drawer Nav

2024 © FINANCE-PEDIA.COM