Put option - Financial definition
Financial acronyms
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Concise definition of the term put option
A financial option which gives its owner the right, but not the obligation, to sell a fixed amount or quantity of the underlying asset at a specific price (strike) and at (European style) or over (American style) a given time.
Comprehensive definition of the term put option
A put is purchased in expectation of lower prices. The seller receives the premium as compensation for accepting the obligation to accept delivery if the put buyer exercises his right to sell. If prices are expected to rise, a put may be sold.