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.

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

Related Links:
Investing in bonds - What are they, and do they belong in your portfolio? Bond Basics Tutorial

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