Chapter 06 · Section 6.1

Mechanics of a Ratio Put Spread

To put on a ratio put spread, you:

a) sell one of the lower strike and buy two or more of the higher strike.
b) buy two or more of the lower strike and sell one of the higher strike.
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.
  Yes. Selling two or more of the lower strike and buying one of the higher strike will result in a market neutral strategy. Continue

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