Valuation of put option writer


Valuation of put option writer


This article needs additional citations for verification. Please help improve this article by adding citations to reliable sources. Unsourced material may pt challenged and removed. (December 2009) ( Learn how and when to remove this template message)Further information: Option: Model implementationIn finance, a price (premium) is paid or received for purchasing or selling options. Unsourced material may be challenged and removed.

(November 2015) ( Learn how and when to remove this template message)In finance, a put or put option is a stock market device valkation gives the owner of a put the right, but not the obligation, to sell an asset (the underlying), at a specified price (the strike), by a predetermined date (the expiry or maturity) to a given party (the seller of the put).

Put writing is an essential part of options strategies. Selling a put is a strategy where an investor writes a put contract, and by selling the contract to the put buyer, the investor has sold the right to sell shares at a specific price. Thus, the put buyer now has the right to sell shares to the put seller.Selling a put is advantageous to an investor, because he or she will receive the premium in exchange for valuation of put option writer to buy shares at the strike price if the contract is exercised.




Writer valuation put of option

Valuation of put option writer


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