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Derivatives

  Derivatives   |   Terms
  • 886
  • August 20, 2020
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Put Money

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“.


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