What is the primary market sentiment associated with implementing a Call Ratio Back Spread?

Bearish Neutral Bullish Volatile

What is the typical ratio of options bought to options sold in a Call Ratio Back Spread?

1:1 2:1 1:2 3:1

What happens to the profit potential in a Call Ratio Back Spread if the market goes up significantly?

Profit is limited Profit is unlimited Profit becomes negative Profit remains constant

What is the term used to describe the initial cash flow received when executing a Call Ratio Back Spread?

Net debit Net credit Spread premium Strike differential

What is the maximum loss in a Call Ratio Back Spread?

Unlimited Equal to the net credit Equal to the spread Spread minus net credit

At what point does the maximum loss occur in a Call Ratio Back Spread?

At the lower strike price At the higher strike price Halfway between the strike prices When the market expires below the lower strike price

How many breakeven points are there in a Call Ratio Back Spread?

One Two Three None

What is the recommended strike selection strategy for a Call Ratio Back Spread, irrespective of time to expiry?

Deep ITM + Deep OTM Slightly ITM + Slightly OTM Deep OTM + Slightly ITM Deep ITM + Slightly OTM

How does an increase in volatility affect a Call Ratio Back Spread with ample time to expiry?

Beneficial Detrimental No impact Unpredictable

How does an increase in volatility affect a Call Ratio Back Spread with very few days to expiry?

Beneficial Detrimental No impact Unpredictable