credit derivatives

CFA Level III
#1

just want to make sure: spreads widen: - buy put spread option - long forward spreads spreads narrow: - buy call spread option - short forward spreads

#2

former trader Wrote: ------------------------------------------------------- > just want to make sure: > > spreads widen: > > - buy put spread option no you want to buy call spread option > - long forward spreads > > spreads narrow: > > - buy call spread option you want to buy put spread option > - short forward spreads

#3

spreads widen buy call option

#4

This is BEFORE spreads widen when you’d buy the Credit Call Spreads right and long the forward right??