put option


put option
An option that gives the option buyer the right but not the obligation to sell ( go " short") the underlying futures contract at the strike price on or before the expiration date. Chicago Board of Trade glossary
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This 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. Bloomberg Financial Dictionary
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A contract that provides the purchaser the right (but not the obligation) to sell a futures contract at an agreed price (the strike price) at any time during the life of the option. A put option is purchased in the expectation of a decline in price. Chicago Mercantile Exchange Glossary
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A contract which confers upon the holder the right, but not the obligation, to sell an asset at a given price on or before a given date. Dresdner Kleinwort Wasserstein financial glossary
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A put option confers the right but not the obligation to sell stock, shares or futures at the option exercise price within a predetermined time period. Exchange Handbook Glossary
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An option that provides the right but not the obligation to sell the underlying. LIFFE
Ratio spread LIFFE
An option strategy whereby the amount of futures or options contracts purchased is not equal to the amount of contracts sold. LIFFE
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It is an option that gives the buyer the right to sell an underlying asset at a future date at a specified price. London Stock Exchange Glossary
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Gives the buyer the right to sell a number of shares of stock at a price until the option's expiration date. Put buyers hope the price of the stock will fall. Puts may also be purchased to protect an investment in case the price of the stock goes down. NYSE Euronext Glossary

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put option put option option

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put option UK US noun [C] (also put) FINANCE, STOCK MARKET
an arrangement that allows the sale of shares, etc. at an agreed price until or on a particular date: »

They want to purchase put options in order to protect against a decline in the market value of the underlying security.

Compare STOCK OPTION(Cf. ↑stock option)

Financial and business terms. 2012.

Look at other dictionaries:

  • put option — see option 3 Merriam Webster’s Dictionary of Law. Merriam Webster. 1996. put option …   Law dictionary

  • Put option — NOTOC A put option (sometimes simply called a put ) is a financial contract between two parties, the seller (writer) and the buyer of the option. The put allows its buyer the right but not the obligation to sell a commodity or financial… …   Wikipedia

  • Put-Option — Payoff eines Puts zum Laufzeitende t=T; Hockeystick Funktion Auszahlungsstruktur einer Put Option abhängig vom Preis des Basiswertes am Laufzeitende. Eine Put Option …   Deutsch Wikipedia

  • Put Option — Payoff eines Puts zum Laufzeitende t=T; Hockeystick Funktion Auszahlungsstruktur einer Put Option abhängig vom Preis des Basiswertes am Laufzeitende. Eine Put Option …   Deutsch Wikipedia

  • Put option — This security gives investors the right to sell (or put) fixed number of shares at a fixed price within a given time frame. 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… …   Financial and business terms

  • Put Option — An option contract giving the owner the right, but not the obligation, to sell a specified amount of an underlying security at a specified price within a specified time. This is the opposite of a call option, which gives the holder the right to… …   Investment dictionary

  • put option — pasirinkimo parduoti sandoris statusas Aprobuotas sritis buhalterinė apskaita ir finansinė atskaitomybė apibrėžtis Sandoris, pagal kurį už tam tikrą mokestį įsigyjama teisė, bet ne įsipareigojimas ateityje už nustatytą kainą parduoti prekes,… …   Lithuanian dictionary (lietuvių žodynas)

  • put option — put′ op tion n. Finance. ste bus put 37) …   From formal English to slang

  • put option — noun 1. an option to sell • Hypernyms: ↑stock option 2. the option to sell a given stock (or stock index or commodity future) at a given price before a given date • Syn: ↑put • Ant: ↑call option • Hy …   Useful english dictionary

  • put option — /pυt ɒpʃən/ noun an option to sell shares at a certain price (NOTE: The opposite is call option.) …   Dictionary of banking and finance


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