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.
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- History Of Cats at CatQuotes.Com.
In the XIth century domestic cat spread over the whole Europe and became an ordinary domestic animal used in household first of all for catching rodents.