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Ratio spread

A spread in which the number of long options represents a fraction of the number of short options, the short options having the same maturity but a higher exercise price in the case of call options, or a lower exercise price in the case of put options, than that of the options purchased.

Synonyms and variations

  • Call ratio spread
  • Put ratio spread
  • Ratio call spread
  • Ratio put spread
  • Ratio vertical spread

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See also