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Strap

• In option trading, buying 2 calls and 1 put with same exercise price and maturity.

 
 Embedded terms in definition
 Exercise price
Exercise
Maturity
Option
Put
Trading
 
 Referenced Terms
 Strip, strap: Variants of a straddle. A strip is two puts and one call on a stock, a Strap is two calls and one put on a stock. In both cases, the puts and calls have the same strike price and expiration date.

 
 Related Terms
 Strip, strap

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