Chapter 06 · Section 6.1

Mechanics of a Ratio Put Spread

To put on a ratio put spread, you:

b) buy two or more of the lower strike and sell one of the higher strike.
No. Answer (b) describes a put ratio backspread, a volatile market strategy.
c) buy one of the lower strike and sell two or more of the higher strike.
d) sell two or more of the lower strike and buy one of the higher strike.