What Is Buy Put Option (iPhone TRUSTED)

A is a financial contract that gives the buyer the right, but not the obligation , to sell an underlying asset (like 100 shares of a stock) at a predetermined price, known as the strike price .

The final day the option contract is valid. How Buying a Put Works (With Examples) what is buy put option

The stock stays at $100 or rises. You choose not to exercise the option, and your loss is capped at the $300 premium . The Break-Even Point A is a financial contract that gives the

You buy one $95 strike put option for a $3 premium. Cost: Total cost is $300 ($3 premium × 100 shares). but not the obligation