Futures
Option > Puts Options
Put Options
A put option is a contract between two parties (a 'put') that gives the buyer the right to sell an underlying security, normally 100 shares of stock at a predetermined, fixed price - known as the strike price (exercise price). For which the buyer pays a premium.
There is an obligation for the seller (called the 'writer') of the put option; to buy the underlying security at the strike price, on or before the expiration, if he or she is assigned (exercised against).
The obligation with the Put is unlike with the futures contract where
both the buyer and seller are obligated to exercise the contract.
