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Mandarin Collar
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A traditional collar structure with the possibility of an enhanced payout. The enhanced payout occurs in a low volatility environment from a binary option that pays off if the underlying stays inside the collared range for the life of the instrument. The enhanced payout can alternately be evaluated in terms of up- and-out or down-and-out options that eliminate the extra payout for staying in the range. The collared range is usually narrow.
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