Put Option
Definition
Put Option — Meaning, Definition & Full Explanation
A Put Option is a financial derivative contract that grants the holder the right, but not the obligation, to sell an underlying asset at a specified price (the strike price) on or before a particular date (the expiration date). Conversely, the seller of this put contract is obligated to buy the underlying asset if the holder chooses to exercise their right. This instrument is primarily used for hedging against price declines or speculating on a fall in the asset's value.
What is a Put Option?
A Put Option is a type of options contract that gives the buyer the right to sell an underlying asset, such as a stock, commodity, or currency, at a predetermined price, known as the strike price, before a specific expiration date. The buyer