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Summary Of: Put option

of the payoffs and profits generated by a put option as seen by the buyer of the option... of the payoffs and profits generated by a put option as seen by the buyer of the option... of the payoffs and profits generated by a put option as seen by the writer of the option... of the payoffs and profits generated by a put option as seen by the writer of the option... allows the holder to exercise the put option for a short period of time right before expiration... Example of a put option on a stock... Example of a put option on a stock... Put Option premium paid to Trader B for buying the contract of 100 shares... This example illustrates that the put option has positive monetary value when the underlying instrument has a...

Encyclodia Page On: Put option

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Option (law) | Buying a put option - This is a graphical interpretation of the payoffs and profits generated by a put option as seen by the buyer of the option. A lower stock price means a higher profit. Eventually, the price of the underlying security will be low enough to fully compensate for the price of the option. | | Writing a put option - This is a graphical interpretation of the payoffs and profits generated by a put option as seen by the writer of the option. Profit is maximized when the price of the underlying security exceeds the strike price, because the option expires worthless and the writer keeps the premium. | | financial | contract | option | commodity | financial instrument | underlying instrument | strike price | position | option style | European put option | American put option | stock | interest | interest rate floor | gold | crude oil | option spread | spot price | in-the-money | volatile | financial mathematics | Black-Scholes | Call option | Credit default option | Interest rate cap and floor | Options on futures | Real option | v | d | Derivatives market | Derivative (finance) | Options | Strike price | Expiration | Volatility | Open interest | Pin risk | Risk-free rate | Vanilla options | Option styles | Call | Warrants | Fixed income | Employee stock option | FX | Bond option | Exotic options | Asian | Lookback | Barrier | Binary | Swaption | Forward start option | Cliquet | Mountain range | Rainbow option | Compound option | Options strategies | Covered call | Naked put | Collar | Straddle | Strangle | Butterfly | Iron condor | Options spreads | Bull spread | Bear spread | Calendar spread | Vertical spread | Debit spread | Credit spread | Valuation of options | Moneyness | Option time value | Put-call parity | Black-Scholes | Black | Binomial | Simulation | Swaps | Interest rate swap | Total return swap | Equity swap | Forex swap | Currency swap | Constant maturity swap | Basis swap | Volatility swap | Credit default swap | Variance swap | Equity derivative | Fund derivative | Credit derivative | CPPI | Interest rate derivative | Inflation derivatives | Real estate derivatives | PRDC | Futures contract | ELN | CLN | Categories | Options |
This article is licensed under the GNU Free Documentation License. It uses material from the Wikipedia article "Put option".