1. For bonds, the process of removing coupons from a bond and then selling the separate parts as a zero coupon bond and interest paying coupons. Also known as a stripped bond or zero coupon bond.

2. In options, a strategy created by being long in one call and two put options, all with the exact same strike price.


In the context of bonds, stripping is typically done by a brokerage or other financial institution.

  1. Coupon

    The annual interest rate paid on a bond, expressed as a percentage ...
  2. Strap

    An options strategy created by being long in one put and two ...
  3. Call

    1. The period of time between the opening and closing of some ...
  4. Strike Price

    The price at which a specific derivative contract can be exercised. ...
  5. Zero-Coupon Bond

    A debt security that doesn't pay interest (a coupon) but is traded ...
  6. Put

    An option contract giving the owner the right, but not the obligation, ...
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