Definitions for put option
put op·tion

Princeton's WordNetRate this definition:0.0 / 0 votes

1. put optionnoun

   an option to sell

2. put option, putnoun

   the option to sell a given stock (or stock index or commodity future) at a given price before a given date

WikidataRate this definition:0.0 / 0 votes

1. Put option

   A put or put option is a contract between two parties to exchange an asset, at a specified price, by a predetermined date. One party, the buyer of the put, has the right, but not an obligation, to re-sell the asset at the strike price by the future date, while the other party, the seller of the put, has the obligation to repurchase the asset at the strike price if the buyer exercises the option. If the strike is K, and at time t the value of the underlying is S, then in an American option the buyer can exercise the put for a payout of K-S up until the option's maturity time T. The put yields a positive return only if the spot price falls below the strike when the option is exercised. A European option can only be exercised at time T rather than any time up until T, and a Bermudan option can be exercised only on specific dates listed in the terms of the contract. If the option is not exercised by maturity, it expires worthless. The most obvious use of a put is as a type of insurance. In the protective put strategy, the investor buys enough puts to cover his holdings of the underlying so that if a drastic downward movement of the underlying's price occurs, he has the option to sell the holdings at the strike price. Another use is for speculation: an investor can take a short position in the underlying stock without trading in it directly.

Matched Categories

1. • Stock Option

How to pronounce put option?

1. Alex

   US English

   David

   US English

   Mark

   US English

   Daniel

   British

   Libby

   British

   Mia

   British

   Karen

   Australian

   Hayley

   Australian

   Natasha

   Australian

   Veena

   Indian

   Priya

   Indian

   Neerja

   Indian

   Zira

   US English

   Oliver

   British

   Wendy

   British

   Fred

   US English

   Tessa

   South African

How to say put option in sign language?

Numerology

1. Chaldean Numerology

   The numerical value of put option in Chaldean Numerology is: 5

2. Pythagorean Numerology

   The numerical value of put option in Pythagorean Numerology is: 2

Examples of put option in a Sentence

1. Joe Jimenez:

   There's a put( option) in 2018 but as long as there's value that's going to continue to be generated here, we are happy to participate in it.

References

1. ^ Princeton's WordNet
   http://wordnetweb.princeton.edu/perl/webwn?s=put option
2. ^ Wikidata
   https://www.wikidata.org/w/index.php?search=put option