A box spread is a good strategy to use if high volatility is expected.

Name: A box spread is a good strategy to use if high volatility is expected.
Brand: Quizplus
Rating: 4.8 (38 reviews)

Question

Quizplus · Accepted Answer

A box spread is used primarily as an arbitrage strategy to capture discrepancies in pricing, rather than to profit from high volatility. It involves creating a synthetic long and a synthetic short position to lock in a risk-free profit, and its performance is not dependent on market volatility.

A Box Spread Is a Good Strategy to Use If