13 handouts of the slides for olin students only all

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Handouts of the slides for Olin students only. All Rights Reserved. Prof. Zhou©2019 PARTICIPATING COLLAR A variation of an equity collar. It allows an investor to retain thr unlimited upside potential on a portion of the underlying equity holding. However, the investor must accept a lower cap on the remainder of his holdings. Like the traditional equity collar, the participating collar protects the investor’s entire position below the floor value and may be structured so that there is no up front premium payable. 14
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