Cat Spread

Business, Legal & Accounting Glossary

  1. Home
  2. Glossary
  3. Define: Cat Spread

Definition: Cat Spread

Cat Spread
Cite Term
Sources

Full Definition of Cat Spread

A type of call option that is traded on the Chicago Board of Trade (CBOT) which takes the form of an option for catastrophe futures contract. A cat spread is utilized by insurance companies to hedge their risk coverage of catastrophic events. To purchase a cat spread, it requires selling or buying a call option where the underlying asset is a catastrophe contract while at the same time selling or buying the same number of call options at a higher strike price.

Cite Term

To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
https://payrollheaven.com/define/cat-spread/
Modern Language Association (MLA):
Cat Spread. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
April 23, 2024 https://payrollheaven.com/define/cat-spread/.
Chicago Manual of Style (CMS):
Cat Spread. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
https://payrollheaven.com/define/cat-spread/ (accessed: April 23, 2024).
American Psychological Association (APA):
Cat Spread. PayrollHeaven.com. Retrieved April 23, 2024
, from PayrollHeaven.com website: https://payrollheaven.com/define/cat-spread/

Definition Sources

Definitions for Cat Spread are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 20th November, 2021 | 0 Views.