Put option is a type of financial contract that gives the owner the right, but not the obligation, to sell a specific underlying asset at a predetermined price within a defined period of time. This type of option is most commonly used as a form of hedging against potential losses in a market downturn or to speculate on the market's future movements. The owner of a put option hopes that the underlying asset's price will decrease below the predetermined price, allowing them to sell the asset at a higher price and make a profit.
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