Post by Eurex

How can market participants borrow and lend efficiently via index options?   The answer is: box spreads.   Box spreads are option structures with payouts that act like synthetic loans. When traded on EURO STOXX 50® Index Options, these structures are highly liquid, widely traded instruments used to borrow and lend across a wide range of maturities.   Each counterparty assumes the credit risk of the clearing house, making box spreads an efficient way to manage and deploy capital.   Our first paper in a new research series explores box spreads in Europe: what these structures are, their use cases, how they are executed, and the associated risks.   👉 Download the full paper to get the complete picture: https://lnkd.in/eQawgVHb