What is a Put Option ?

 Definition:

 

 Put option is a derivative contract between two parties. The buyer of the put option earns a right (it is not an obligation) to exercise his option to sell a particular asset to the put option seller for a stipulated period of time.

Description: 

Once the buyer of put exercises his option (before the expiration date), the seller of put has no other choice than to purchase the asset at the strike price at which it was originally agreed. The buyer of put expects the value of asset to decrease so that he can purchase more quantity at lower price.

Credit : EconomicTimes