privilege to sell an option listed on a security at a higher price than its value on a record date as a way to protect against a decline in exchange rate
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Put option Definition from Language, Idioms & Slang Dictionaries & Glossaries
put option
put over v
1. communicate successfully; "i couldn't get across the message"; "he put over the idea very well" [syn: get across ]
2. hold back to a later time; "let's postpone the exam" [syn: postpone, hold over, table, shelve, set back, defer, remit, put off]
Noun
1. an option to sell
(hypernym) stock option
2. the option to sell a given stock (or stock index or commodity future) at a given price before a given date
(synonym) put
(antonym) call option, call
(hypernym) option
(part-holonym) straddle, span
Put option Definition from Business & Finance Dictionaries & Glossaries
This security gives investors the right to sell (or put) a fixed number of shares at a fixed price within a given time frame. An investor, for example, might wish to have the right to sell shares of a stock at a certain price by a certain time in order to protect, or hedge, an existing investment.
Copyright © 2000, Campbell R. Harvey. All Rights Reserved.
A put option gives the owner the right, but not the obligation, to sell the underlying stock at a given price (the strike price ) by a given time (the expiration date). The owner is speculating that the option will go up in value and the underlying stock will go down in value. The purpose can be to either speculate with the option (hope it goes up and sell for a profit) or trade the underlying stock at a locked in price if the stock price goes down enough. For example, an AAA MAR 65 put would give the owner the right to sell 100 shares of AAA at $65 (strike price) per share between now and the third Friday in March (expiration date).
An option in a lease (e.g.- for equipment purchase or lease renewal) in which the exercise of the option is at the lessor's- not the lessee's- discretion. In other words- the lessor maintains control and can force a sale on the lessee. Used to achieve operating leases and disguise loans.
I can buy the right to sell a stock(that you would not necessarily own) at a specified price within some future period, this is called the put option
Put option Definition from Encyclopedia Dictionaries & Glossaries
A put or put option is a contract between two parties to exchange an asset (the underlying), at a specified price (the strike), by a predetermined date (the expiry or maturity). One party, the buyer of the put, has the right, but not an obligation, to sell the asset at the strike price by the future date, while the other party, the seller of the put, has the obligation to buy the asset at the strike price if the buyer exercises the option.
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Put option Definition from Law Dictionaries & Glossaries
The right to sell stock at a specified (exercise) price within a specified period of time.
Courtesy of the 'Lectric Law Library.