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WebFeb 28, 2024 · Put credit spreads are constructed by selling a put option and buying another put option at a lower strike price (same expiration). In both cases, the option that is sold will be more expensive than the option that is purchased, which leads to … WebA weekly at-the-money call option sells for $1.55 per share, while a similar put option sells for $1.56. Remember, both have a strike price of $105. By selling the call and buying the put, you’re completely hedged. The transaction also results in a cash inflow of 1 cent per share or $1 per contract. WebJan 3, 2012 · April 14 (Reuters) - Risk reversals are an FX option contract that can profit from FX volatility and they are challenging a critical level in EUR/USD right now and that matters. Option risk ... citing two different authors in text apa