put option Meaning in the Cambridge English Dictionary Cambridge dictionaries logo

Meaning of “put option” in the English Dictionary

"put option" in Business English

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put optionnoun [C]

uk   us   (also put) FINANCE, STOCK MARKET
an ​arrangement that ​allows the ​sale of ​shares, etc. at an ​agreedprice until or on a particular ​date: They want to ​purchase put ​options in ​order to ​protect against a ​decline in the ​marketvalue of the ​underlyingsecurity.
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(Definition of put option from the Cambridge Business English Dictionary © Cambridge University Press)
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