put option
Definition
Formal contract between an option seller (optioner) and an option buyer (optionee) which gives the optionee the right but not the obligation to sell a specific contract, financial instrument, property, or security, at a specified price (called exercise Price) on or before the option's expiration date. Inve1stors who buy put options believe the price of the underlying asset will go down and they will be able to purchase (for reselling) another option on the same asset at a price lower than the current exercise price. Opposite of call option.
put option is in the Commodities & Precious Metals Trading, Currency Trading, Disaster Planning & Risk Management and Securities & Futures Trading subjects.
put option appears in the definitions of the following terms:
diagonal spread,
best of two option,
worst of two option,
AC-DC option,
option seller,
long straddle,
longterm equity anticipation security (LEAPS),
call option,
option,
vertical spread
and
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