Put Option

Knowledge Center

12manage is looking for contributors...

   

Description of Put Option. Explanation.

Contents

  1. Summary
  2. Forum
  3. Best Practices
  4. Expert Tips
  5. Resources
  6. Print
 

Definition Put Option. Description.


A Put Option is an option that gives the buyer the right, but not the obligation, to sell the underlying stock, commodity, or other financial instrument at a set time and strike price from the writer (seller) of the put option. Normally, one option contract for a stock confers the right to sell 100 shares of the underlying stock.


The writer must buy the commodity or financial instrument should the buyer so decide. The purchaser pays a premium (a fee) for this right.


The purchaser of a put option expects the price of the commodity/instrument to decrease in the future; the writer expects that it will not, or he is willing to give up some of the upside (profit) from a price decrease in return for the premium plus still having the opportunity to make a gain up to the strike price.


Put Options Forum
  Quotes on Put Options. Quotations
Hi, do you know of a remarkable, humorous quote by...
     
 

Put Options Special Interest Group


Special Interest Group

 

Best Practices - Put Options Premium

Expert Tips - Put Options Premium

Resources - Put Options Premium
 

News about Put OptionsSign up


     
 

Videos about Put OptionsSign up


     
 

Presentations about Put OptionsSign up


     
 

Books about Put OptionsSign up


     
 

More about Put OptionsSign up


     

Compare with: American-Style Option  |  European-Style Option  |  Call Option  |  Asian Option  |  Real Options  |  Futures Contract  |  Hedge  |  Warrant

Special Interest Group Leader

You here


 

Return to Management Hub: Finance & Investing


More on Management  |  Return to Management Dictionary  | 

 

This ends our Put Option summary and forum.



About 12manage | Advertising | Link to us / Cite us | Privacy | Suggestions | Terms of Service
2018 12manage - The Executive Fast Track. V14.1 - Last updated: 23-7-2018. All names of their owners.