Derivatives
Call Money
August 20, 2020
Exchanges
Spread
August 21, 2020

The price that is paid or received for a put option. For a buyer, it is the cost of the put option- the cost incurred by the buyer against the right to exercise on, i.e., sell, an underlying. For a seller (writer), it is the price received from granting the buyer the right to exercise.

For traded options, the put money is typically termed the “put premium“.

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Posts