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Options box spreads have frequently been used as a tool for collateralized lending and borrowing. Box spreads are uniquely suitable for this purpose because they may be purchased or sold with a potentially large initial cash transfer.
Once transacted, boxes allow the option trader to “lock-in” a fixed amount upon expiration valued at the difference in the strike prices. Boxes are typically priced at a discount to the difference in strike prices that generally reflects prevailing short-term interest rates.
To the extent that such trades are booked with the CME Group Clearing House, the buyer (the effective lender) and seller (the effective borrower) of the box are protected by all the financial sureties offered thereby.