Definition of Put option:
A put option is a contract that gives the owner this right, but not its obligation, to sell or sell a certain amount of basic security at a certain price for a certain period of time. The default price at which the put option buyer can sell is known as the strike price.
Option to sell an asset at a price on or before a specific date.
A formal agreement between an option seller (optional) and an option buyer (optional) that gives the holder the right to sell a specific contract, financial instrument, asset or guarantee for a specific price, but not its obligation (declared) Or before). . Expiry date of the option The investor who buys the reverse option assumes that the value of the underlying asset will decrease and can buy the second option of the same asset at a price lower than the current value of the structure.
Trading options on a variety of underlying assets, including stocks, currencies, bonds, commodities, futures and indices. The call option can be compared to the call option, which allows the holder to purchase the underlying asset at a specified price before or after the termination of the optional contract. Your understanding is essential if you intend to overlap or accelerate.
How to use Put option in a sentence?
- Provides the right option to the input holder, but not its obligation, to sell a certain number of basic securities for a certain price within a specified period.
- Input options are available on a variety of assets, including stocks, indexes, commodities and currencies.
- The value of the input option is affected by the value of the underlying asset and the quality deteriorates over time. In this case, when the value of the underlying asset decreases and the maturity date approaches, its value decreases.
- A necklace is equivalent to buying a call option and selling an input option.
Meaning of Put option & Put option Definition