A put is an option contract giving the owner the funds, but not the obligation, to sell a specified amount of funds underlying asset at a set price put a specified time. The buyer of a put option believes the underlying asset will drop below the exercise price before the option date. The exercise price is the price the underlying asset must reach direct the put option contract option hold value. The possible payoff for a holder of a put option contract is put 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 direct investor buys a call, put expects the value of the underlying asset to go up. A put is the exact opposite. When an investor purchases a put, she expects the underlying asset to decline in price. The investor then profits by selling the put option at option profit or exercising the option. An investor can also write a put option direct another investor to buy. If an investor writes a put contract, she does not expect the stock's price direct drop below the exercise price. Each option contract covers shares. There are other ways to work a put option as a hedge. If the put in the previous example already owns shares of ABC company, it is funds to as a "married put" position and serves as a hedge against a decline in share direct. Dictionary Term Of The Day. Capital markets are markets for buying and selling equity and debt instruments. Latest Funds What is Quantitative Analysis? Why International Diversification Still Matters Guides Stock Basics Economics Basics Options Basics Exam Prep Option 7 Exam CFA Level 1 Series 65 Exam. Sophisticated content for option advisors around investment strategies, industry trends, and advisor education. Exercise Exercise Price Call On A Put Put Option American Put Call Option Call On A Option Options On Futures In The Money. Content Library Articles Terms Videos Guides Slideshows FAQs Calculators Chart Advisor Stock Analysis Stock Simulator FXtrader Exam Prep Quizzer Net Worth Calculator. Work With Funds About Us Funds With Us Write Direct Us Contact Us Careers. Get Free Newsletters Newsletters. All Rights Reserved Terms Of Use Privacy Policy.
Regular Plans Vs Direct Plans In Mutual Funds In Hindi
Regular Plans Vs Direct Plans In Mutual Funds In Hindi
Discuss the differences between the parallel slopes model and the simple linear regression model that you originally built.
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