# 3ABCDEFGHIJKLMNOPQRSTUVWYZ

Risk Reversal

An option strategy involving the purchase of a put option and the sale of a call option. It offers protection against a fall in prices but limits the profits to be made from higher prices. The premium generated from the sale of an option could partly or totally finance the premium to be paid for the purchase of the option. Also known as a cylinder, a break forward or range forward.