Analysis of vertical spread strategies and suggestion of optimal algorithm for practical investment

Vertical Bull Spread strategy and Vertical Bear Spread strategy are analysed in this paper.Profit functions are described for all possible ways of their creation. Conditions are providead under which particular methods are equivalent in terms of profit funcion. Based on these theoretical principles optimal algorithm for use of Verical Spread strategies in practical investment is designed.

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Author(s)

Soltes, Vincent