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About Put Options - (As Part of Derivatives, Options)
A put option gives the owner the right, but not the obligation, to sell an underlying asset at a specified strike price by a specified expiration date. The owner pays a premium upfront for this right. For example, if an investor believes the stock AT&T will decline, they can buy a put option to sell AT&T at $32 per share by June 19th for a $3.20 premium, protecting them if it falls but allowing profit if it rises without obligation to sell. Put and call options originated during the Dutch Tulip Crisis in the early 1600s as the first derivative contracts.
Detailed Information
| Author: | ['A'] |
|---|---|
| Publication Year: | 2020 |
| Pages: | 1 |
| Language: | English |
| Format: | |
| Price: | FREE |
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