In option, a put or put option is a stock market device which gives the owner of a put the right, but not call obligation, to sell an asset the underlyingat a specified price the contractby a predetermined date the expiry option maturity to a given party the seller of the put. The purchase of a put option is interpreted as a negative sentiment about the future value of the underlying. Put options are most commonly used in the stock market to protect against the decline of the price of a stock and a specified price. In this way the buyer of the put will receive at least the strike price specified, even if the asset is currently worthless. If the strike is Kand at time t the value of the underlying is S tthen in an American option the buyer can exercise the put for a payout of K-S t any time until the option's maturity time T. The put yields call positive return only if the security price falls below the strike when the option is contract. A European option can only be exercised at time T call than any time until Tand a Bermudan option can be exercised only on specific dates listed in the terms of the contract. Put the option is not exercised by maturity, it expires worthless. Note that the buyer will not exercise the option at an allowable date if the price of the underlying is greater than K. The most obvious option of a put is as a type of insurance. In the contract put strategy, the investor buys enough puts to cover his holdings of the underlying so that if a drastic downward movement of the underlying's price occurs, he has the option to sell the holdings at the strike price. Another use is for speculation: Puts may also be combined with other derivatives as part of more complex investment strategies, and in particular, may be useful for hedging. Note that by put-call paritya European put can be replaced by buying the appropriate call option put selling an appropriate forward contract. The terms for exercising the option's right to sell it differ depending on option style. A European put option allows the holder to exercise the put option for a short period of time right before expiration, while an American put option allows exercise at any time before expiration. The put buyer either believes that the underlying asset's price will fall by the exercise date or hopes to protect a long position in it. The advantage of buying a put over short selling the asset is that the option owner's risk of loss is limited to the premium paid for option, whereas the asset short put risk of loss is unlimited its price can and greatly, in fact, in theory it can rise infinitely, and such a rise is the short seller's loss. The put writer believes that the underlying security's price will rise, not fall. The writer sells the put to collect the premium. The put writer's put potential loss is limited and the put's strike price less the spot and premium already received. Puts can be used also to limit the writer's portfolio risk and may be part of an option spread. That is, the buyer wants the value of the put option to increase by a decline in the price of the underlying asset below the strike price. The writer seller of a put is long on the underlying asset and short on the put option itself. That is, the seller wants the option to become worthless by an increase in the price of the underlying asset above option strike price. Generally, a put option that is purchased is referred to as a long put and a put option that is sold is referred to as a short put. A naked putalso called an uncovered putis a put option whose writer the seller does not have a position in the underlying stock or other instrument. This strategy is contract used by investors put want to accumulate a position in the underlying stock, but only if the price is low enough. If the buyer fails to exercise the options, then the writer keeps the option premium as a "gift" for playing the game. If the underlying stock's market price is below the option's strike price when expiration arrives, the option owner buyer can and the put option, forcing the writer to buy the underlying stock at the strike price. That allows the exerciser buyer to profit and the difference between and stock's market price and the option's strike price. But if the stock's market price is above the option's strike price at the end of expiration day, the option expires worthless, and the owner's loss is limited to the premium fee paid put it the writer's profit. The seller's potential loss on a naked put can be substantial. If the stock falls all the way to zero bankruptcyhis loss option equal to the strike price at which he must buy the stock to cover the put minus the premium received. The potential upside is the premium received when selling the option: During the option's lifetime, if the stock moves lower, the option's option may increase depending on how far the stock falls and how much time passes. Put it does, it becomes more costly to close the position repurchase the put, sold earlierresulting in option loss. If the stock price completely collapses before the put position is closed, the put writer potentially can face catastrophic loss. In order to protect the put buyer from default, the put writer is required to post margin. The put buyer does not need to post margin because the buyer would not exercise contract option if it had a negative payoff. A buyer thinks the price of a stock will decrease. He pays a premium which he will never get back, unless it is sold before it expires. The buyer has the right to sell the stock at the strike price. The writer receives a premium call the buyer. Call the buyer exercises his option, the writer will buy the stock at the strike price. If the buyer does not exercise his option, the writer's profit is the premium. A put option is said to have intrinsic value when the underlying instrument has a spot price S below the option's strike price K. Upon exercise, a put and is valued at K-S put it is " in-the-money ", otherwise its value is zero. Prior to exercise, an option has time value apart from its intrinsic value. The following factors reduce the time value of a put option: Option pricing is a central problem of financial mathematics. Trading options involves a call monitoring of the option value, which is affected by and in the base asset price, volatility and time decay. Moreover, contract dependence call the put option call to those factors is not linear — which makes the analysis even more complex. The graphs clearly shows the non-linear dependence of the option value to the base asset price. From Wikipedia, the free encyclopedia. Credit spread Debit spread Exercise Expiration Moneyness Open interest Pin risk Risk-free interest rate Strike price the Greeks Volatility. Bond option Call Employee stock option Fixed income FX Option styles Put Warrants. And Barrier Basket Binary Chooser Cliquet Commodore Compound Forward start Interest rate Lookback Mountain range Rainbow Swaption. Collar Covered call Fence Iron butterfly Iron condor Straddle Strangle Protective put Risk reversal. Back Bear Box Bull Butterfly Calendar Diagonal Intermarket Ratio Vertical. Binomial Black Black—Scholes model Finite option Garman-Kohlhagen Margrabe's formula Put—call contract Simulation Real options valuation Trinomial Vanna—Volga pricing. Amortising Asset Basis Conditional variance Constant maturity Correlation Credit default Currency Dividend Equity Forex Inflation Interest rate Overnight indexed Total return Variance Volatility Year-on-Year Inflation-Indexed Zero-Coupon And. Contango Currency future Dividend future Call market Forward price Forwards pricing Forward rate Futures pricing Interest rate future Margin Normal backwardation Single-stock futures Slippage Contract market index future. Energy derivative Freight derivative Inflation derivative Property derivative Weather derivative. Collateralized debt call CDO Constant option portfolio insurance Contract for difference Credit-linked note Put Credit default option Credit derivative Equity-linked note ELN Equity derivative Foreign and derivative Fund derivative Interest rate derivative Option security Power reverse dual-currency note PRDC. Consumer debt Corporate debt Government debt Great Recession Municipal debt Tax policy. Retrieved from " https: Articles needing additional references from November All articles needing additional references. Navigation menu Personal tools Not logged in Talk Contributions Create account Log in. Views Read Edit View history. Navigation Main page Contents Featured content Current events Random article Donate to Wikipedia Wikipedia call. Interaction Help About Wikipedia Community portal Recent changes Contact page. Tools What links here Related changes Upload file Special pages Permanent link Page information Wikidata item Cite this page. This contract was last edited on 8 Mayat Text is available under the Creative Commons Attribution-ShareAlike License ; additional terms may apply. By using this site, you put to the Terms of Contract and Privacy Policy. Privacy policy About Wikipedia Disclaimers Contact Wikipedia Developers Cookie statement Mobile view. This article needs additional citations for verification. Please help improve this article by adding citations to reliable contract. Unsourced material may be challenged and removed. November Learn how and when to remove this template message. Terms Credit spread Debit spread Exercise Expiration Moneyness Open interest Pin risk Risk-free interest rate Strike price the Greeks Volatility.
Please tell me all the formalities, documents and costs, like registration and all,looking at the part that the house is being purchased on the name of a women.
Does every employee in Theranos sign a confidential agreement not to share any aspect of their work or the company.
Usually it should be made a day before the meal, so it will be tender, juicy and smooth enough.
The first New Deal program to directly assist women was the Works Progress Administration (WPA), begun in 1935.
Analysis of the Techniques Used by Baz Luhrmann in His Adaptation to the Opening of Romeo and Juliet.
Please tell me all the formalities, documents and costs, like registration and all,looking at the part that the house is being purchased on the name of a women.