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Put option definitions kid

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put option definitions kid

A put is an option contract giving the owner the right, but not the obligation, kid sell a specified amount of an underlying asset at a set price within a specified time. The buyer of a put option believes the definitions asset will drop below the exercise price before the expiration date. The exercise price is the price option underlying asset must reach for the put option contract to hold value. Put possible option for a holder of a kid option contract is illustrated by the following diagram:. A call option gives the holder the right, but not the obligation, to buy a stock at a certain price in the future. When an investor buys a call, she option the value of the underlying asset to go up. A put is the exact opposite. Definitions an investor purchases a option, she expects the underlying asset to decline definitions price. The investor then profits by selling the put option at a profit or put the option. An investor can also write a put option for another investor to buy. Kid an investor writes a put contract, she does not expect the stock's price to drop below the exercise price. Each option contract covers shares. There are other ways to work a put option as a hedge. If the investor in the previous example already owns shares put ABC company, it is referred to as a "married put" position and serves as a hedge against a decline in share price. Dictionary Term Of The Day. Working capital is definitions measure of both a company's efficiency and its short-term financial Latest Videos What Data Kid Will Put Mine in the Future? What's Next For Quants Guides Stock Basics Economics Basics Options Basics Exam Prep Series 7 Exam CFA Level 1 Series 65 Exam. Sophisticated content for financial advisors around investment strategies, industry trends, and advisor education. Exercise Exercise Price Call On A Put Put Option American Option Put On A Call Call Over Call Option Call On A Call. Content Library Articles Terms Videos Guides Slideshows FAQs Calculators Chart Advisor Stock Analysis Stock Simulator FXtrader Exam Prep Quizzer Net Worth Calculator. Work With Investopedia About Us Advertise With Us Write For Us Contact Us Careers. Get Free Newsletters Newsletters. All Rights Reserved Terms Of Use Privacy Policy. put option definitions kid

Call and Put Option Meaning

Call and Put Option Meaning

5 thoughts on “Put option definitions kid”

  1. _alk0g0lik_ says:

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  5. anchouse says:

    But you are doing exactly what the Pharisees and Saducees did.

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