Factbites
 Where results make sense
About us   |   Why use us?   |   Reviews   |   PR   |   Contact us  

Topic: Put option


Related Topics

  
  Put
An option contract giving the owner the right, but not the obligation, to sell a specified amount of an underlying asset at a set price within a specified time.
Consider if an investor purchased one put option contract for 100 shares of ABC Co. for $1, or $100 ($1*100).
If ABC shares drop to $8, the investor's put option is in-the-money and he can close his option position by selling his contract on the open market.
www.investopedia.com /terms/p/put.asp   (633 words)

  
  Put option - Wikipedia, the free encyclopedia
A put option (sometimes simply called a "put") is a financial contract between two parties, the buyer and the seller of the option.
The most widely-known put option is for stock in a particular company.
The seller of the put option generally feels that the stock in question is reasonably priced, and should the price fall, the seller may be willing to become the owner of the stock at a lower price, considering it to be a bargain.
en.wikipedia.org /wiki/Put_option   (828 words)

  
 Option - Wikipedia, the free encyclopedia
Most often the term "option" refers to a type of derivative which gives the holder of the option the right but not the obligation to purchase (a "call option") or sell (a "put option") a specified amount of a security within a specified time span.
Additional to the intrinsic value an option has a time value, which decreases the closer the option is to its expiry date.
Employee stock options are also widely used as a compensation vehicle for employees and, in particular, senior executives of publicy traded corporations.
en.wikipedia.org /wiki/Option   (2311 words)

  
 CBOE - Equity Option Concepts
Options are contracts in which the terms of the contract are standardized and give the buyer the right, but not the obligation, to buy or sell a particular asset (e.g., the underlying stock) at a fixed price (the strike price) for a specific period of time (until expiration).
The seller of an option is obligated to perform according to the terms of the options contract-selling the stock at the contracted price (the strike price) for a call seller, or purchasing it for a put seller-if the option is exercised by the buyer.
Put options may provide a more attractive method than shorting stock for profiting on stock price declines, in that, with purchased puts, you have a known and predetermined risk.
www.cboe.com /LearnCenter/Basics.asp   (2323 words)

  
 Calls, Puts & Covered Writes - Call Options - Put Option - Covered Call Options
The greeks of calls and puts are calculated from the price of the stock, the strike price of the option, the estimate of volatility of the stock, the time to expiration of the option, the current interest rate and any dividends payable on the stock before the expiration date of the option.
The theta of options is indirectly proportional to gamma.
Option values depend on the price of the stock, the strike price, the implied volatility of the stock price, the time to expiration, interest rates, and any dividends payable before the expiration of the option.
www.thinkorswim.com /tos/displayPage.tos?webpage=lessonCallsPuts   (3783 words)

  
 Hedging With a Put Option
A commodity put option contract gives the buyer (known also as the purchaser or holder) the right, but not the obligation, to sell a specific futures contract at a known fixed price at any time before or on a certain expiration date.
Put option contracts specify the futures commodity and month, the exercise price, and the period of time for which the option is in effect.
Put option markets are separate from call option markets.
trmep.tamu.edu /cg/factsheets/rm2-12.html   (1565 words)

  
 APPENDIX: ICA AB Put Option
Under these put option arrangements (the "ICA Put Option"), each of the ICA Partners has the right of first refusal with respect to the sale of the shares in ICA of the other ICA Partner.
The ICA Put Option may be exercised beginning on April 27, 2004.
If the ICA Put Option is exercised prior to April 27, 2005, the valuation of the Option Shares (if the parties cannot agree to the price of the shares) will be performed by an independent valuation expert jointly appointed by Ahold and the ICA Partners.
bankrupt.com /misc/ICA_Offer_Appendix.htm   (631 words)

  
 WWWFinance - Option Contracts
A put option is a contact giving its owner the right to sell a fixed amount of a specified underlying asset at a fixed price at any time on or before a fixed date.
Option contracts can be classified according to whether they they give the holder the right to buy or to sell the underlying asset.
Similarly, the omega of the put option is
www.duke.edu /~charvey/Classes/ba350_1997/options/options.htm   (9439 words)

  
 CBOE Total Equity Put Option to CBOE SP500 Index and OEX Put Options Ratio   (Site not responding. Last check: )
Remember that since the ratio is puts to calls an increase in put options increases the value of the ratio while more call options decrease the ratio's value.
The option total open interest was near record levels and the TPCR5daySum*8 ratio was also at the low of it recent range of 24 to 32.
They purchased the put options before they unloaded their stock positions thereby guaranteeing themselves that they wouldn't lose any money by influencing the price of the stock downwards with their massive sell orders.
www.smallinvestors.com /option/CBOE.htm   (2666 words)

  
 About Put Option   (Site not responding. Last check: )
Put Option is in-the-money (ITM) when the strike price is higher than the market price of the underlying asset.
Put Option is exercised, the option seller is obligated to buy 100 shares of the underlying stock at the put's strike price from the option holder.
Put Option are mostly not possible to calculate, except the first contract.
www.cornerstoneway.com /Put-Option.html   (151 words)

  
 a put option alternative for marketing lightweight calves--mmm379   (Site not responding. Last check: )
The "put" option allows its buyer the right, but not the obligation, to be short (sold) in the futures market at a specific price he chooses (the strike price).
Put options are purchased for a one-time, up front, cost called a premium.
With the purchase of the put option the operator is insuring $71.07 or better per cwt.
cherokee.agecon.clemson.edu /mmm379.htm   (1722 words)

  
 Dueling Fools: Options Bull [Fool.com: Commentary] January 12, 2006
Buying the stock outright via option assignment is not, of course, your desired solution, since you'd enter the option combo position only if you expected the stock to go up, in which case the put would expire worthless and not be exercised.
Yes, the options combo replicates owning Apple stock at a per-share price that's $0.25 more expensive than the straight stock purchase, but this is offset by the interest charges saved in not having to shell out the full $7,500 for the stock position.
The other problem with buying call options is that their cost often includes a large slug of time value, which has the bad habit of disappearing with time decay (something that stock does not suffer from).
www.fool.com /news/commentary/2006/commentary06011205.htm?ref=foolwatch   (1401 words)

  
 What Is The Value Of A Call Or Put Option?
A call option is purchased in hopes that the underlying stock price will rise well above the strike price, at which point you may choose to exercise the option.
A Put option represents the right (but not the requirement) to sell a set number of shares of stock (which you do not yet own) at a pre-determined "strike price" before the option reaches its expiration date.
A put option is purchased in hopes that the underlying stock price will drop well below the strike price, at which point you may choose to exercise the option.
www.fincalc.com /inv_06.asp?id=12221   (311 words)

  
 Information on put option   (Site not responding. Last check: )
A put option is a financial contract between two parties, the buyer and the seller...
Wer eine Put Option kauft ist der Meinung, dass der zugrunde liegende Titel in Zukunft an Wert verlieren...
People who have begun saving for retirement late in their working life are most likely to gain a financial advantage from choosing a Roth IRA over a traditional IRA.
cash-gd.com /articles/28/put-option.html   (502 words)

  
 Put Option
An option contract giving the owner the right, but not the obligation, to sell a specified amount of an underlying security at a specified price within a specified time.
If shares of Taser fall to $5 and you exercise the option, you can purchase 100 shares of Taser for $5 in the market and sell the shares to the option's writer for $10 each, which means you make $500 (100 x ($10-$5)) on the put option.
Options Basics Tutorial - An introduction to the world of options, covering everything from primary concepts to how options work and why you might use them.
www.investopedia.com /terms/p/putoption.asp   (486 words)

  
 call option, put option
Call options function similarly to the type of options that companies typically grant employees as part of incentive packages, but unlike stock options, which must usually be held and exercised only by the employee, a call option can be traded on the open market.
Owners of put options hope that the value falls, because they can then buy the commodity at the low price and sell to the pre-existing buyer at the higher predetermined price.
If the price never reaches an agreeable level for the owner of the put, they can allow the option to expire and not purchase the commodity, and all the owner loses is what they paid for the put.
www.energyvortex.com /energydictionary/call_option__put_option.html   (278 words)

  
 oGBS_IV( ) Example - Equity Put Option   (Site not responding. Last check: )
Consider a European put option on a stock that pays no dividends and has a current spot price of $100.00.
The procedure will iterate using more and more precise estimates of volatility until the difference between the option value derived from the volatility estimate and the given market option value is less than the desired accuracy level (see Newton-Raphson).
This process continues until the convergence criteria is met, which for this example occurs on the 6th iteration at a volatility of 22.50%.
www.cafinsoft.com /helpfiles/429.htm   (285 words)

  
 WWWFinance - Option Valuation: Campbell R. Harvey
Note that the only difference between these portfolios and the portfolios we used for put-call parity is the absence of the put option.
The maximum value of a call option is easier to determine than the minimum value.
Notice that the high volatility probabilities just put a little more weights on the tails, i.e., it is more likely that stock is going to move down to $60 or up to $80.
www.duke.edu /~charvey/Classes/ba350/optval/optval.htm   (4847 words)

  
 put option   (Site not responding. Last check: )
Visitors to http://www.nopump.com can find out about the best financial institutions, choices, options and the best competitive rates – interest both on loans and term deposits.
With healthy scepticism … surely this is not for the benefit of the customer but really illustrates the need for banks to get competitive.
Banking customers are finally having a say and a greater understanding as to what happens to their well earned money.
www.financial-repeater1.com /articles/79/put-option.html   (392 words)

  
 Buy a Put Strategy
Given the different arrangements across commodity brokerage firms, you need to ask your broker whether the brokerage fee charged is for the initial purchase of the option only, or does it cover a round turn, that is, also the right to exercise the option.
Many brokers charge an initial brokerage fee to purchase the option, and then another fee to exercise the option.
By exercising the option, the producer will sell a BFP contract at the strike price ($13.00) and buying it back (cash settling) at the announced BFP ($12.00).
www.aae.wisc.edu /future/dev/buy_a_put.htm   (481 words)

  
 Put Options Are Great For The Astute Investor   (Site not responding. Last check: )
Put options can be easily learned about over the internet
Done correctly, put options can be extremely profitable.
Put options are agreements to sell specific stock at a certain time.
www.sum-advantage.com /put-option.html   (148 words)

  
 Put Option vs Short Hedge   (Site not responding. Last check: )
option to establish a price floor for your output.
You will be asked to input hypothetical or actual market closing data for a particular PUT contract.
After you decide whether you want to exercise your option, the implications of this decision on your net selling price is displayed in the next to last column of the following table.
www.aae.wisc.edu /future/dev/current_eg_short_hedge.htm   (339 words)

  
 Boston.com / Business / FACTBOX: Fiat's Put Option to GM - Facts and Future   (Site not responding. Last check: )
An option allowing Fiat to sell its car unit to General Motors came due on Monday but Fiat said it would hold off exercising the put until the groups wrap up talks to settle a dispute over its validity.
MILAN (Reuters) - An option allowing Fiat to sell its car unit to General Motors came due on Monday but Fiat said it would hold off exercising the put until the groups wrap up talks to settle a dispute over its validity.
-- The put is part of a deal signed in 2000 when GM bought 20 percent of Fiat Auto in exchange for 6 percent of GM's shares, then worth $2.4 billion.
www.boston.com /business/articles/2005/01/24/fiat_holds_off_before_exercising_gm_put   (545 words)

  
 Put option - Glossary - Encyclopedia - Library - VC Experts
Put option - Glossary - Encyclopedia - Library - VC Experts
The right to sell a security at a given price (or range) within a given time period.
An attorney-client relationship does not exist in connection with the non-legal services VC Experts provides.
vcexperts.com /vce/library/encyclopedia/glossary_view.asp?glossary_id=202   (164 words)

  
 Example of the use of a Put Option   (Site not responding. Last check: )
As a first example of the use of options, below is a worksheet that allows you to understand the workings of a put option.
Since you are purchasing a put option, we assume that you want to establish a floor for your output price.
Unlike hedging, there is a possibility that by the time you reach the future period, your output price will be higher than the current settle price for the commodity.
www.aae.wisc.edu /future/dev/antomy_of_flr_price.htm   (321 words)

  
 put option Definition
An option contract that gives the holder the right to sell a certain quantity of an underlying security to the writer of the option, at a specified price (strike price) up to a specified date (expiration date); here
Although these investments are complex and usually intended for sophisticated investors, it's worth understanding what they are and how they operate in order to decide if they should play any role in your overall investment strategy.
Learn about call and put options, the components of an options contract, how to value and price options, and what the advantages and disadvantages of options to help you decide if they are the right investment for you.
www.investorwords.com /3974/put_option.html   (229 words)

  
 ABC News: Fiat Says Put Option Still Valid   (Site not responding. Last check: )
The moment of truth appeared to be nearing as a period of mediation was to expire Tuesday, Feb. 1, 2005, with speculation focusing on how much the Detroit-based company might be willing to pay to avoid a legal battle with Fiat over the 90 percent of Fiat Auto it does not already own.
The Turin-based automaker said in a statement shortly before the Italian stock market opened that the put option remained valid and "could be exercised in the terms agreed, and is an important asset for the company."
Fiat said the put option, part of a 2000 agreement that says the Italian company has the right to sell its car business to GM, could be exercised from Wednesday until July 24, 2010.
abcnews.go.com /Business/wireStory?id=463502   (340 words)

Try your search on: Qwika (all wikis)

Factbites
  About us   |   Why use us?   |   Reviews   |   Press   |   Contact us  
Copyright © 2005-2007 www.factbites.com Usage implies agreement with terms.