Put option
A put option is the right to sell the underlying security at a specified time in the future for a defined price. On the other hand, the short side must accept delivery and pay the price.
The payout diagram of a short put:
A put option is the right to sell the underlying security at a specified time in the future for a defined price. On the other hand, the short side must accept delivery and pay the price.
The payout diagram of a short put: