The Put Option expires at 17:00 New York City time on 1 July 2010 and entitles each hoThis security gives investors the right to sell (or put) a fixed number of shares at a fixed price within a given period. An investor, for example, might wish to have the right to sell shares of a stock at a certain price by a certain time in order to protect, or hedge, an existing investment. Put Option. An option contract in which the holder has the right but not the obligation to sell some underlying asset at an agreed-upon price on or before the expiration date of the contract, regardless of the prevailing market price of the underlying asset.
One buys a put option if one believes the price for the underlying asset will fall by the end of the contract. If the price does fall, the holder may buy and resell the underlying asset for a profit. 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 put option dictionary larousse purchasing something is not quite possible (or desired) the option for many individuals and companies comes down to leasing or renting.
While both have similarities, getting access to an asset for a limited period, there are significant. Read more. The option itself is a security in its own right, as it can be purchased and sold.
Put option dictionary larousse