Option Box Spreads as a Financing Tool

Efficient Alternative for Capitally-Constrained Customers to Secure Financing

Today, traders are operating in an environment where access to capital is constrained by regulatory uncertainties, counterparty credit sensitivities and firm-specific funding policies. As a result, both individual traders and firms are looking for alternative ways to secure financing with minimal counterparty exposure at market-driven, competitive rates. One alternative is the construction of box spreads on CME Standard S&P 500 Flex options on futures (“options”).

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