Multinational corporations use combinations of options and forward contracts to build customized, Structured Derivative Products that eliminate upfront premium expenses.

[Buy Currency Call Option] + [Sell Currency Put Option] ---> Offsetting Premium Expenses ---> Zero Upfront Capital Outflow

A zero-cost collar allows a company to secure an exchange rate safety band without paying an upfront premium. The premium received from selling the out-of-the-money put option offsets the premium cost of buying the call option, locking corporate conversions within a stable, pre-defined trading band.