Variable Ratio Write

Definition:

An option strategy in which the investor owns 100 shares of the underlying security and writes two call options against it, each option having a different striking price.

Investing Essentials


Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University

Term of the Day

Terms of Delivery

The part of a sales contract that indicates the point at which title and risk of loss of merchandise pass from the seller to the buyer. See: Incoterms.

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