Chapter 06 · Section 6.1

Put on a ratio call spread

When you put on a ratio call spread:

• a) you are long and want the market to rally.
  No. The ratio call spread will lose money if the market rallies.
  b) you are short and want the market to fall.
  c) you are neutral and want the market to sit.
  d) you are neutral but want the market to move+ in either direction.