Funds Drive Eurostoxx Div Option Pickup

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Funds Drive Eurostoxx Div Option Pickup

Hedge funds have been increasingly opting for options on Eurostoxx dividends with mid-term maturities as risk premium contraction in equities has reduced expected returns from long only, delta one strategies. Typical option structures have included call spread/ratios, call spread collars and put collars, according to traders and strategists.

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