Put Option

What is a put option?

Put option that includes the right (but not the obligation) to sell securities (including company shares) within a certain period or at a certain time. The put option can be structured as a debt instrument or as an in rem instrument. In the case of a put option under the law of obligations, only the obligation of another party to transfer the promised object is established if the option is exercised. In the case of a put option in rem, the party entitled to the option can bring about the transfer of ownership by means of a unilateral declaration of intent, without any further cooperation by the other party being required. The counterpart to the put option is the call option.

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