Question

In your own words, define a put option, its benefits and how it works.

Your response should be at least 200 words in length. All sources used, including the textbook, must be referenced; paraphrased and quoted material must have accompanying citations.

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This material may consist of step-by-step explanations on how to solve a problem or examples of proper writing, including the use of citations, references, bibliographies, and formatting. This material is made available for the sole purpose of studying and learning - misuse is strictly forbidden.

A put option is an instrument, which gives the buyer of the option, the right and not the obligation, to sell a specified security at a predetermined rate...

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