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Ratio Calendar Spread

Definition:

Selling more near-term options than longer-term ones purchased, all with the same strike; either puts or calls.

Investing Essentials


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

Term of the Day

Stock buyback

A corporation's purchase of its own outstanding stock, usually in order to raise the company's earnings per share.

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