The put option premium that is paid by a put buyer. It represents the compensation a put buyer pays to a put seller against possessing the right to exercise on some underlying asset or variable. In other words, it refers to the put premium from the put buyer’s perspective. For example, the right to exercise on some put option may cost $5. The buyer will pay this amount as a long put premium to the seller (who receives it as a short put premium).
This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.
Comments