What is PUT OPTION?

A contract allowing the buyer to sell an asset back at strike price. This occurs at or before the maturity date. They are written based on a broad range of commodity and financial references. Refer to call option.

More On This Topic



Link to This Definition
Did you find this definition of PUT OPTION helpful? You can share it by copying the code below and adding it to your blog or web page.
Written and fact checked by The Law Dictionary