put option

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Put option

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.

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. If the price does not fall, the option expires and the holder's loss is limited to the price of buying the contract. Put options may be used on their own or in conjunction with call options to create an option spread in order to hedge risk.

put option

See put.

Put option.

Buying a put option gives you the right to sell the specific financial instrument underlying the option at a specific price, called the exercise or strike price, to the writer, or seller, of the option before the option expires.

You pay the seller a premium for the option, and if you exercise your right to sell, the seller must buy.

Selling a put option means you collect a premium at the time of sale. But you must buy the option's underlying instrument if the option buyer exercises the option and you are assigned to meet the contract's terms.

Not surprisingly, buyers and sellers have different goals. Buyers hope that the price of the underlying instrument drops so they can sell at the exercise price, which is higher than the market price. This way, they could offset the price of the premium, and hopefully make a profit as well.

Sellers, on the other hand, hope that the price stays the same or increases, so they can keep the premium they've collected and not have to lay out money to buy.

put option

see OPTION.

put option

see OPTION.
References in periodicals archive ?
In a predefined window (likely 2-6 weeks) ahead of the puttable bonds maturity date, the bond holder will be responsible for sharing with the verification agent the details of the emission reduction credits he plans to surrender with the bond.
NEW YORK -- Fitch Ratings assigns a rating of 'AA-/F1+'; Negative Outlook to the following Short Puttable Exempt Adjustable Receipts (SPEARs) of the Deutsche Bank SPEARs/LIFERs Trust:
NEW YORK -- Fitch Ratings assigns a rating of 'AA-/F1+', Outlook Negative to the $9,750,000 Short Puttable Exempt Adjustable Receipts series DBE-1011 (SPEARs) and a rating of 'AA-', Outlook Negative to the $3,250,000 Long Inverse Floating Exempt Receipts series DBE-1011A-C (LIFERs), and $13,000,000 Custodial Receipts, series DBE-1011A-C of the Deutsche Bank SPEARs/LIFERs Trust.
La Quinta also expects to use the net proceeds to fund senior notes maturing or puttable in 2003 and 2004 that were not tendered, repay borrowings under the Company's revolving credit facility and for general corporate purposes.
NEW YORK -- Fitch Ratings assigns a rating of 'AA-/F1+', Outlook Negative to the $18,560,000 Short Puttable Exempt Adjustable Receipts series DBE-1012 (SPEARs) and a rating of 'AA-', Outlook Negative to the $6,190,000 Long Inverse Floating Exempt Receipts series DBE-1012A-D (LIFERs), and $24,750,000 Custodial Receipts, series DBE-1012A-D of the Deutsche Bank SPEARs/LIFERs Trust.
NEW YORK -- Fitch Ratings assigns a rating of 'AA-/F1+', Outlook Negative to the $9,000,000 Short Puttable Exempt Adjustable Receipts series DBE-1013 (SPEARs) and a rating of 'AA-', Outlook Negative to the $3,000,000 Long Inverse Floating Exempt Receipts series DBE-1013A&B (LIFERs), and $12,000,000 Custodial Receipts, series DBE-1013A&B of the Deutsche Bank SPEARs/LIFERs Trust.
for Early Retirement In February 2003 of $825 Million of Puttable Reset Securities Due February 1, 2011; Also Announces Repurchase of $84 Million Face Principal Amount of Long-Term Debt, we are advised by the company that the first paragraph, second sentence, should read "sell the PURS to Motorola on February 3, 2003" rather than "on February 3, 2002" as originally issued inadvertently.
The proceeds of the notes will be invested in puttable medium-term notes (MTNs) issued by Links Finance Corp.
NEW YORK -- Fitch Ratings assigns a rating of 'AA-/F1+', Outlook Negative to the $37,595,000 short puttable exempt adjustable receipts series DBE-1008 (SPEARs) and a rating of 'AA-', Outlook Negative to the $5,000 long inverse floating exempt receipts series DBE-1008 (LIFERs), and $37,600,000 custodial receipts, series DBE-1008 of the Deutsche Bank SPEARs/LIFERs Trust.
The collateral in this transaction consists of puttable medium-term notes issued by Links Finance Corp.
NEW YORK -- Fitch Ratings assigns a rating of 'AA-/F1+', Outlook Negative to the $16,660,000 short puttable exempt adjustable receipts series DBE-1010 (SPEARs) and a rating of 'AA-', Outlook Negative to the $3,340,000 long inverse floating exempt receipts series DBE-1010 (LIFERs), and $20,000,000 custodial receipts, series DBE-1010 of the Deutsche Bank SPEARs/LIFERs Trust.
NEW YORK -- Fitch Ratings (Fitch) assigns a rating of 'AA-/F1+'; Outlook Negative to the $8,630,000 Short Puttable Exempt Adjustable Receipts Series DBE-1009 (SPEARs) and a rating of 'AA-'; Outlook Negative to the $2,880,000 Long Inverse Floating Exempt Receipts Series DBE-1009 (LIFERs), and $11,510,000 Custodial Receipts, Series DBE-1009 of the Deutsche Bank SPEARs/LIFERs Trust.