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Put option

• This security gives investors the right to sell (or put) fixed number of shares at a fixed price within a given time frame. An investor, for example, might wish to have the right to sell shares of a stock at a certain price by a certain time in order to protect, or hedge, an existing investment.

• An option to sell 100 common shares on or before a specified future date at a stated price.

• A Put Option is the fight to sell (but not the obligation) to the underlying asset at a fixed price (the exercise price) during a fixed time period. To obtain the put option, the buyer pays a premium to the seller. The seller of the put option has the obligation to receive the asset and pay the exercise price.

• The right to sell stock at a specified (exercise) price within a specified period of time.

• Is a derivative contract which grants to the purchaser the right but not the obligation to exercise. In the case of stocks, the put holder or owner would transfer 100 shares of stock upon exercise to the seller of the put at the stipulated strike price. In the case of futures, the holder or owner of the put would effectively receive a short position in the market which would be priced at the strike. The seller of the put would receive the corresponding long futures position.

 
 

Follow this link for all the terms related to option.

 
 Embedded terms in definition
 Asset
Common shares
Contract
Derivative
Exercise price
Exercise
Futures
Future
Grants
Hedge
Investor
Long
Market
Option
Order
Position
Premium
Put
Right
Security
Sell
Shares
Short position
Short
Stock
Strike price
Time
Underlying asset
Underlying
 
 Related Terms
 
Abandonment option
American option
American style option
Annuity form or option
Arbitrage free option pricing models
Asian option
Bargain purchase price option
Binary option
Binomial option pricing model
Black option model
Black scholes option model
Black scholes option pricing model
Butterfly option spread
Call an option
Call option
Compound option
Covered or hedge option strategies
Covered put
Currency option
Delta hedge of an option
Delta of an option
Doubling option
Down and in option
Down and out option
Elasticity of an option
Embedded option
European option
European style option
Exercise or option price
Exercising the option
Explicit option
Foreign currency option
Futures option
Gamma of an option
Garmen kohlhagen option pricing model
Greenshoe option
Ho lee option model
Implicit option
In the money option
Index and option market
Index option
Intrinsic value of an option
Irrational call option
Liquid yield option note
Lookback option
Married put
Multi option financing facility
Naked option
Naked option position
Naked option strategies
Option
Option adjusted duration
Option adjusted spread
Option adjusted spread model
Option elasticity
Option models
Option not to deliver
Option premium
Option price
Option seller
Option trading strategies
Option type
Option writer
Out of the money option
Path dependent option
Poison put
Postponement option
Prepayment option
Protective put buying strategy
Purchased put
Put
Put an option
Put bond
Put call parity relationship
Put price
Put provision
Put swaption
Quality option
Rho of an option
Seller's option
Short option minimum charge
Sold put
Split fee option
Stock index option
Stock option
Swap option
Synthetic long put
Synthetic short put
Tax deferral option
Tax timing option
Time value of an option
Timing option
Transferable put right
Two state option pricing model
Uncovered put
Virtual currency option
Wild card option
Yield curve option pricing models
Yield to call, option or event date

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