Put Option

A put option is a type of option which gives a seller the right, without any obligation, to sell a fixed number of predefined underlying assets at a fixed time (European put option) or within a defined time-frame (American put option) at a fixed price (the “strike price” or “exercise price”).

Unlike a call option, a put option does not provide a right to buy, but a right to sell.

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Expert Benjamin Manz
Benjamin Manz is CEO of moneyland.ch and an independent expert on banking and finance.