Morning ablutions and other responsibilities. by Daniel R. Levitan. This morning a phrase popped into my head â âmorning ablutionsâ. I do not believe that I have heard that phrase used in the past thirty or forty years; certainly it is not a common expression these days. But I was pleased that my mind was still functioning, even if in somewhat unpredictable ways.
Definition of 'Put Option'. Definition: Put option is a derivative contract between two parties. The buyer of the put option earns a right (it is not an obligation) to exercise his option to sell a particular asset to the put option seller for a stipulated period of time.
However, as you'll see with the two methods below, it is possible. A put option gives the purchaser the right to sell the underlying at the agreed upon strike price, regardless of how far the price declines.For this right, the trader pays a premium, which in turn is kept by the writer of the option if the price of the asset closes above the strike price at expiration.owever, as you'll see with the two methods below, it is possible. A put option gives the purchaser the right to sell the underlying at the agreed upon strike price, regardless of how far the price declines.