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PUT
OPTION
Put Option is a kind of Financial Contract. The contract speaks about the ability
of owner to sell the stock at agreed price on agreed time. This gives the owner right to
sell the stock but it is not an obligation.
On expiration date, the Put Option becomes worthless and the owner has to
carry a loss equivalent to the amount he paid as Put Option Premium.
It is opposite to Call Option, where the owner
gets a right to buy the stocks. |