Meaning BUTTERFLY SPREAD: Applies to derivative products. Complex option strategy that involves selling two calls and buying two calls on the same or different markets, with several maturity dates. One of the options has a higher exercise price and the other has a lower exercise price than the other two options. The payoff diagram resembles the shape of a butterfly
More terms such as Butterfly spread in Dictionary B.
- Definition Balance Sheet:
- Examples Also called the statement of financial condition, it is a summary of a company's assets, liabilities, and owners' equity butterfly spread definition.
- Definition Boning:
- Examples Charging a lot more for an asset than its worth butterfly spread explain.
- Definition Baker Plan:
- Examples S. Treasury Secretary James Baker under which 15 principal middle-income debtor countries (the Baker 15) would undertake growth-oriented structural reforms, to be supported by increased financing butterfly spread what is.
- Definition Buy Limit Order:
- Examples A conditional trading order that indicates a security may be purchased only at the designated price or lower. Related: Sell limit order butterfly spread meaning.
- Definition Bull-Bear Bond:
- Examples principal repayment is linked to the price of another security. The bonds are issued in two tranches: In the first tranche repayment increases with the price of the other security, and in the second butterfly spread abbreviation.
