Calendar Spread
Definition
(1) The purchase of one delivery month of a given futures contract and simultaneous sale of a different delivery month of the same futures contract; (2) the purchase of a put or call option and the simultaneous sale of the same type of option with typically the same strike price but a different expiration date. Also called a Horizontal Spread or Time Spread.
Related Terms Other terms related to 'Calendar Spread' starting with the letter 'C' Covered Option, Closing Out, Cover, Commercial Paper, Certificate of Deposit CD Browse by Letter » A B C D E F G H I J K L M N O P Q R S T U V W Y Z
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