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Purchased put

• Is a bearish strategy. It confers the right but not the obligation to exercise the contract into a short position in the underlying instrument. The risk is limited to the premium paid, and the reward is theoretically considered to be limited to the difference between the strike less a zero market price.

 
 Embedded terms in definition
 Bearish
Contract
Exercise
Market
Position
Premium
Right
Risk
Short position
Short
Underlying
 
 Related Terms
 

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