Hi, in this question, I am assuming that we have long exposure in the currency. I know that P+ would incur the highest cost but will provide full downside protection.
In what scenarios Bear put spread, Collar (Short risk reversal) and Short Seagull Spread preferred?
If we want limited downside protection then — Bear put spread
If we want zero cost strategy & willing to give upside potential — collar
limted downside protection . reduce cost & willing to given upside potential — short seagull