Butterfly Spread

Business / Finance / 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.

Other Words for Spread

Spread Noun Synonyms: grow, develop, increase, broaden, expand, extend, widen, enlarge, mushroom, proliferate, sprawl, branch out, metastasize
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Selling The Spread

Business / Finance / Selling The Spread: A spread whose option to be sold is trading at a higher premium than the option to be bought. MORE

Sea-Floor Spreading

Science / Geology / Sea-Floor Spreading: The mechanism by which new sea floor crust is created at ridges in divergence zones and adjacent plates are moved apart to make room. This process may continue at 0.5 to 10 centimeters/year through ma MORE

Spread

Business / Finance / Spread: A fixed-term trust from which income is distributed to the beneficiary (such as a child of the grantor) to take advantage of a lower tax bracket, and that at the end of the term passes to the grantor' MORE

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