What is a put option?
A put option is a financial contract that gives the holder the right, but not the obligation, to sell a specific quantity of an underlying asset at a predetermined price within a specified timeframe. Put options are typically used by investors as a way to hedge against potential losses in the value of their investments or to speculate on the decline in the price of an asset. When the price of the underlying asset falls below the strike price of the put option, the holder can exercise the option and sell the asset at a profit.
This mind map was published on 27 April 2024 and has been viewed 33 times.
