Warning

Info

Warning

Info

Warning

Info

LSDefine

Simple English definitions for legal terms

put option

Read a random definition: sicut alias

A quick definition of put option:

A put option is a type of financial tool that allows the owner to sell a certain asset, like stocks or commodities, at a specific price within a certain time frame. The owner of a put option hopes that the price of the asset will go down, so they can sell it for more than it's worth. The person who has to buy the asset is called the call option holder. If the price of the asset drops below the agreed-upon price, the owner of the put option can sell it and make a profit. The Securities and Exchange Commission has a sample contract that shows how a put option works.

A more thorough explanation:

A put option is a type of financial instrument that gives the owner the right to sell an underlying security at a pre-determined price within a specific timeframe. This underlying security can be anything from stocks, currencies, bonds, commodities, or index funds.

The owner of a put option is betting that the price of the underlying security will decrease in the future. If this happens, the owner can force the other party to buy the security at a price that is higher than the market value. The more the value of the underlying security decreases, the more valuable the put option becomes.

For example, let's say you own 100 shares of XYZ Company, and you're worried that the stock price will drop in the next few months. You could buy a put option that gives you the right to sell those shares at a pre-determined price. If the stock price does drop, you can exercise the option and sell your shares at the higher price, making a profit.

It's important to note that the party who has the obligation to purchase the underlying security from the put option owner holds a call option. The put option owner can exercise their option when the underlying security drops below the pre-determined price, plus any additional amount to make up for the cost of the put option contract.

Overall, put options can be a useful tool for investors who want to protect themselves against potential losses in the stock market or other financial markets.

Pure per stirpes | Putative

Warning

Info

General

General chat about the legal profession.
main_chatroom
👍 Chat vibe: 0 👎
Help us make LSD better!
Tell us what's important to you
Dkk
19:42
SEO is big money
2016 pushed the conservative party into populism irreversibly
Dkk
19:43
Maybe, but if this is populism, then every election is populist.
19:43
@Dkk: yeah register 1 website and every swinging tom dick and harry calls/emails/texts to 'help with seo'. like bruh, if YOU found it, what i am doing is working
Dkk
19:43
Indeed!
19:48
wasp, i think people are hopeful for a gov who at least attempts to care about the common man
MIAMI A
[] AromaticTroubledDormouse
20:55
How does one know if they are UR1 or UR2?
[] AromaticTroubledDormouse
20:56
CONGRATS MACAQUE!
TY
got a random stanford email and almost had a heart attack
ALSO CONGRATS!
Congrats1!
21:15
Miami A, yall I'm so excited I could cry.
21:15
Feel like I can finally stop holding my breath!! Whew!!!
[] baddestbunny
22:16
every time I get accosted by a strange man who follows me around because my male coworkers were too busy talking to walk me back to my car I get closer to saying we need to bring back traditional gender roles
Dkk
22:32
Nice! @Macaque
Dkk
22:32
@Aromatic, Have to guess.
Dkk
22:33
That sucks @Bunny do you have to go to the hospital?
[] baddestbunny
22:40
I said accosted not assaulted
23:35
guys. my notre dame address just went long is this good or bad
1a2b3c4d26z
23:37
Oooooo me too
23:37
omg is this good or bad
Dkk
23:47
Idk if gender roles are gunna fix that then.
23:49
it looks like most people who applied in october last cycle didn't get a decision until january... does it even mean anything that our addresses went long??
hows ED 2 compared to ED 1?
Dkk
0:10
No idea
windyMagician
0:34
reporting live to say my ndls address also went long
does it mean anything ^
Dkk
2:21
NDLS and Fordham took a very long time last year. It's good info for people to know.
LSD+ is ad-free, with DMs, discounts, case briefs & more.