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Key Takeaways
- A put option gives the buyer the right to sell an asset at a fixed price within a set time.
- Terminal value depends on stock price at maturity; exercised if lower than exercise price.
- Put option price before maturity = Intrinsic value + Time value.
- Writing a put option has limited gains/losses based on exercise or expiration.
www.wallstreetoasis.com/resources/skills/trading-investing/put-option- People also ask
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