Search Fast Answers:
|
|
Need answers fast? Enter a term or phrase related to your question in the search box below or click on Browse by category and topic.
|
|
|
|
Browse by category and topic
|
|
Questions and Answers containing put option
|
|
What is a put option?
A put option is a contract that is the right, but not the obligation, to sell a stock or other underlying commodity at a given price within a given period of time. The price at which the stock can be sold under the put option contract is the strike or exercise price. You purchase a put option if you expect the price of the underlying stock to fall. The writer of a put option is the party obligated to perform under the option contract and for this responsibility receives a non-refundable premium. As the holder of a put option, you have the right to exercise the option, but you are not obligated to under the contract. If you let a put option expire worthless, your loss is limited to the premium paid.Return to Questions
|
|
|
|
