box spread

box spread definition - finance
An arbitrage play in the options market in which both a bull spread and a bear spread are established in order to create a risk-free profit. One spread includes put options and the other includes call options. An arbitrage attempts to profit from the difference in prices on two different markets. See also arbitrage, bull spread, and bear spread.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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