Price a put option definition


A put price definition option


This article needs additional citations for verification. Refinition help improve this article by adding citations to reliable sources. Unsourced material may be challenged and removed. (November 2015) ( Learn how and when to remove this template message)In finance, a put or put option is a stock market device which gives the owner of a put the right, but not the obligation, to sell an asset (the underlying), at a specified price (the strike), by a predetermined date (the expiry or maturity) to a given party (the seller of the put).

Conversely, a put option loses its value as the underlying stock increases and the time to expiration approaches. Time DecayThe value of a put option decreases due to time decay, because the probability of the stock falling below the specified strikeWhat is a Put Option. Otpion specifically, a put option is price a put option definition right to SELL 100 shares of a stock or an index at a certain price by a certain date.

The buyer of a put option believes the underlying asset will drop below the exercise price before the expiration date. The exercise price is the price the underlying asset must reach for the put option contract to hold value. Definition of Call and Put Options:Call and put options are derivative investments (their price movements are based on the price movements of another financial product, called the underlying).




Price a put option definition

A put price definition option


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