Put Option
/ˈpʊt ˌɒpʃən/
Definitions
- (n.) A financial contract granting the holder the right, but not the obligation, to sell an asset at a specified price within a set time.
She exercised her put option to sell the shares before the price declined.
Forms
- put options
Related terms
See also
Commentary
Put options are important in contract drafting to clarify exercise conditions and to allocate risk between parties in financial transactions.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.