====== Collar (Risk Reversal) ======
 
This option structure is established by the simultaneous purchase of a put or a call option and sale of the other type option with the same expiries. If you buy an OTM call and sell an OTM put, you will have the so called **risk reversal**, which is a type of collar. If the premiums of both options are equal, this is a zero cost collar (ZCC). ZCC is also known as synthetic or range forward and is often used for hedging. 

**P&L at the expiry**

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