An option to sell assets at an agreed price on or before a particular date.
- A collar is the equivalent of buying a call option and selling a put option.
- On one day alone last week, more than 12,600 put options for July, priced at 200p, changed hands.
- But maximum losses are limited here because we have a long put option (with a strike price of 50).
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Line breaks: put op¦tion
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