Price collar

Maximum losses are floored at around 700,000, similar to those with the ATM options, but the up-front premium cost is almost zero, comparing very favourably with the cost of the ATM options in excess of 600,000. If the investor is wrong, and bond prices continue to rise, the investor can still enjoy the benefit of a rise in bond prices of more than 1.50% before the calls sold cap the investor s profits at around 800,000. For many investors in this position, the price collar is an excellent strategy. 

Briys E, Crouhy M, Schobel R (1991) The Pricing of Default-Free Interest Rate Cap, Floor and Collar Agreements. The Journal of Finance 46 1879-1892. 

The present cost of GPS collar equipment ranging from US 2000-3000 is still too high for commercial use. A reduction of both the prices and the size of the devices would make it possible for the individual cattle owner to track the whereabouts of his animals, simply by checking his mobile telephone or computer. Comparable devices are already widely in use to track hunting dogs, where a GPS collar with GSM connections transfers data to the hunter who can follow his dog in real time on a map in his GSM-telephone (Tracker Oy, 2009). 

Hyman, R., and Price, R. (1983), The New Working Class White Collar Workers and Their Organizations (London Macmillan). 

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