A put option is a financial contract that gives the buyer the right, but not the obligation, to sell a specified amount of an underlying asset at a specified price on or before a specified date. Put options are often used to hedge against the risk of a decline in the price of the underlying asset.
Put options can be bought and sold on an options exchange. When you buy a put option, you are essentially buying the right to sell the underlying asset at a specified price. The price at which you can sell the asset is called the strike price. The date on which you can sell the asset is called the expiration date.
