Cash-Secured Put

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Definition: Cash-Secured Put

Cash-Secured Put
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Full Definition of Cash-Secured Put

A put option in which an investor writes a put contract and then deposits into the broker’s account an amount equal to the put’s strike price, in an event the option is exercised. The money deposited acts as a guarantee to the broker that the investor will be able to meet the conditions of the contract. Meanwhile, the deposit may be invested in short-term investment to yield interest.

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To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
https://payrollheaven.com/define/cash-secured-put/
Modern Language Association (MLA):
Cash-Secured Put. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
April 20, 2024 https://payrollheaven.com/define/cash-secured-put/.
Chicago Manual of Style (CMS):
Cash-Secured Put. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
https://payrollheaven.com/define/cash-secured-put/ (accessed: April 20, 2024).
American Psychological Association (APA):
Cash-Secured Put. PayrollHeaven.com. Retrieved April 20, 2024
, from PayrollHeaven.com website: https://payrollheaven.com/define/cash-secured-put/

Definition Sources

Definitions for Cash-Secured Put are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 20th November, 2021 | 0 Views.